As Christmas approaches, the festive spirit is not just limited to celebrations but also marks a significant shift in the financial sector.
According to IBS Intelligence, this year, UK neobanks have surpassed traditional banks in terms of app downloads, a first in the industry, according to latest data from SplitMetrics. This pivotal change highlights the rising influence of FinTech companies in the competitive banking landscape.
In a detailed breakdown, UK neobanks have achieved a remarkable user base of 71.78 million on Android, slightly more than the 71.58 million garnered by legacy banks. The growth rate of neobanks is particularly notable, with an addition of 18.6m users in 2024 alone, significantly overshadowing the 7.5m new users of traditional banks. Leading the neobank surge is Revolut, with 15.6m new users, followed by Monzo and Starling with 1.8m and 463k new users respectively. On the flip side, the largest gains among legacy banks were seen by Lloyds, Barclays, and Halifax.
The trading app sector also witnessed unprecedented growth, with nearly 11m new Android users globally in 2024, surpassing the previous year’s record. These apps now boast 86m lifetime users, with UK-based apps making up 22.8m of this total. Trade Republic, eToro, and Robinhood lead this expansion, highlighting the increasing popularity of retail investing.
Moreover, the money management app sector has excelled, adding 1.1m new users this year, with Plum and Moneybox leading the charge. This trend underscores a growing public interest in financial literacy and effective budget management tools.
The cryptocurrency sector has seen a robust recovery after a turbulent 2023, with a notable increase to 5.6m downloads in 2024. European apps like Luno and Nexo are at the forefront of this revival, which is bolstered by the burgeoning segment of crypto AI apps such as uTrading and Pionex, which nearly doubled their downloads from the previous year.
Thomas Kriebernegg, General Manager at SplitMetrics Agency, commented on the findings, stating, “Finance is one of the most competitive app categories, blending retail banking, investment, and crypto with B2B services. Startups are disrupting the space, but traditional banks are catching up, leveraging their established user bases. FinTech is no longer a challenger—it’s a dominant force.”
As the FinTech sector celebrates its 2024 victories, the challenges of user acquisition costs and retention strategies loom large. With neobanks currently leading the charge and trading apps setting new records, the industry is poised for continued growth and innovation into 2025 and beyond.
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