Consumers moving towards fintechs and neobanks for their main bank card

Digital-only financial providers (including neobanks such as Monzo, Starling and Revolut and fintechs such as Klarna), expanded their reach from 16% of adults in 2018 to a staggering 50% in 2024 according to research from RFI Global, the only global data and insights company focusing exclusively on financial services.

RFI Global’s UK banking research surveyed 4000 consumers aged 18 years and above during December and January 2025 about evolving financial product holdings, behaviours and preferences.

While traditional banks still dominate financial services, more consumers have their main debit card with a neobank and spend 20% more than consumers with a main debit card from a Big Six bank. RFI’s research shows that consumers holding their main debit card with a neobank rose from 1% at the end of 2020 to 9% at the end of 2024, while the share of market for the Big Six banks decreased from 85% to 71% in the same period.

Hubert Petka, Group Director at RFI Global said “Everywhere you look neobanks are becoming a bigger part of the system. They are popular among younger generations such as GenZ and millennials who value their advanced digital capabilities and convenience. Yet banks remain resilient as they increase their agility and consumers continue to use their cards, alongside cards from neobanks, to meet their day to day needs. Nonetheless, neobanks are poised to grow in the years to come and could really threaten the dominance of the incumbent players over the next decade.”

It used to be the case that people were more likely to get divorced than change their main bank provider. UK consumers are more likely to switch banks to utilise attractive deals and to access rewards such as cash bonuses, interest and other perks. Of the consumers who are strongly considering switching their main current account in the next 12 months, half claim they are considering switching to access an incentive or that the other provider offers better rewards.

Petka continued “Amidst fierce competition, banks have ramped up their efforts to win over consumers. These attractive rewards are reshaping the landscape of consumer loyalty and engagement. Yet with the majority of consumers lacking access to any loyalty perks through their main banks and dissatisfied with their current rewards proposition, there is still more that could be done by financial providers to attract and retain customers,” concluded RFI’s Petka. “As consumer expectations continue to shift, all financial institutions need to pay attention to the nuances of these trends.”

Nearly half (49%) of UK consumers are dipping into their savings to cover rising household expenses and unexpected costs, the highest amount for over a decade. A further quarter (27%) say they will need to access more credit this year to cover continued rising costs – opening additional credit cards or using BNPL.

Of the 43 million people in the UK who save (80% of the banked population), more than one third – predominantly millennials aged between 27 and 42 years – have less than £1,000, and 29% have less than £500, in their savings accounts. At the same time, the top 25% of savers, largely retired baby boomers, boast average savings of £91,500.

Petka concluded “Despite rising intentions to save for a rainy day, consumers struggled to save last year and turned to savings to cover a higher cost of living. New savings account openings, which followed a rise in interest rates, have now tapered off and the average balance in the main savings account has reduced by a third.”