The UK and Europe are technologically advancing by the day, and this can be seen with the consumer behaviour. A new SplitMtrics report shows that in the first half of this year, neobanks in the UK gained about 9.5 million Android users, which is 81% more than how many legacy bank users were gained in the same time frame.
The report confirms, “If this trend is repeated in the second half of the year, neobanks will reach 71.5 million app users versus 72 million for legacy banks.” Legacy banks are starting to slow down in growth as the younger generation of adults are beginning their banking journeys in the digital realm.
What Is A Neobank?
A Neobank is a type of fintech service that operates entirely online, with no physical locations or branches. All their services are provided via websites or apps, hence “neo”, which means “new”. These are the new-age banking systems with the latest technologies.
Neobanks tend to give users lower banking fees, and higher interest rates, the perfect choice for those looking for cost-friendly banks. Many neobanks have features like budgeting tools, expense tracking, and early access to direct deposits for responsible financial decisions.
Thomas Kriebernegg, General Manager, SplitMetrics Agency, said, “Neobanks had a strong start to 2024 and are moving ever closer to closing the gap with legacy banks, especially in the UK. UK banking fintechs are growing at a much faster pace than legacy banks quarter-to-quarter, and account for an impressive 50% of all new banking app users in the first half of 2024.”
Top Banking Apps On Play Store
SplitMetrics looked at the top 10 banking apps by downloads on the Google Play Store in the first half of 2024. Revolut leads with 7.9 million downloads, followed by Santander Spain with 1.2 million. Monzo ranks third with 935,000 downloads. Ma Banque (Credit Agricole) follows with 836,000 downloads.
Lloyds Bank Mobile Banking has 655,000 downloads, while Barclays reached 601,000. Intesa Sanpaolo Mobile has 555,000 downloads, and Halifax Mobile Banking has 546,000. Santander Poland recorded 516,000 downloads, and NatWest Mobile Banking closes the list with 477,000 downloads.
Is Revolut A Neobank?
Revolut is a UK based global neobank that operates online, and doesn’t have physical branches. This neobank was founded in 2011 and is great for all finance needs. It has an app that lets users access accounts, forex, stock and crypto trading all on one platform.
According to the report, Revolut has the highest lifetime downloads on Play Store, at 46 million. Revolut is famous for its convenience: lower fees, real-time transactions, and a global reach, making it better than traditional banks that rely mainly on physical locations.
Will Neobanks Become The New Norm?
Due to the digital world becoming the norm across industries, its not far fetched for banking to follow. This growth in downloads shows there will continue to be exponential growth. In the UK, SplitMetrics believe that by 2025, neobanks will have surpassed legacy banks.
Kriebernegg commented on the rise of neobank users saying, “It’s not surprising as it is a trend we have been observing via the mobile app ecosystem for the past few years. It will be interesting to see how the rest of the year continues, and especially whether UK fintechs manage to close the gap on legacy banks. The competition will be strong and the fintech sector will have to face the challenge of building on their app marketing campaigns to retain and gain new users.”
