Part
01
of two
Part
01
UK Challenger Banks: Market Overview
According to Banking Tech, there are 102 challenger banks in the United Kingdom as of February 2019. Key players in the UK challenger banks market include Monzo, Revolut, Starling Bank, Atom, and N26.
UK Challenger Banks: Market Overview
Players
- According to Banking Tech, there are 102 challenger banks in the UK as of February 2019.
- Key players in the UK challenger banks market include Monzo, Revolut, Starling Bank, Atom and N26.
- Top six SME challenger banks control about 10.2% of the market.
- In the SME challenger banks segment, top 6 SME challenger banks in the UK based on the number of business current accounts include CYBG (190,000), TSB (100,000), Metro Bank (100,000), Co-operative Bank (90,000), Tide (85,000), and Starling Bank (30,000).
Funding Raised by Key Players
- Monzo raised $93 million in November 2017.
- Atom Bank raised in a total of $140 million in 2017.
- In September 2019, Starling Bank raised $54 million in fresh funding.
UK Challenger Bank Market Growth Dynamics
- According to KPMG, the UK has the most number of challenger banks on account of unsaturated nature of traditional banks and early adoption of digital banking.
- According to Accenture, challenger banks in the UK are growing.
- Further, challenger banks would continue to grow as additional £775 million would be provided under the Alternative Remedies Package to promote competition in the small and medium-sized enterprises (SMEs) market.
- The UK challenger bank industry has grown at a steady pace over the past five years on account of facilitating medium to small size entrepreneurs and full adoption of digital and mobile services.
- According to KPMG, the balance sheets for small challenger banks grew by 22.5% in 2016.
- According to KPMG, the balance sheets for large challenger banks grew by 7.8% in 2016.
Users of Challenger Banks
- According to a study conducted by Censuswide, 1 in 4 millennial and Generation Z demographic groups in the UK use digital-only challenger banks.
- Further, 14% of all the UK bank customers have at least one mobile-only digital banking provider.
YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:
We garnered most of our data from sources such as KPMG, Accenture, Trade Finance Global, AltFi, Learn Bonds, FStech, Telegraph, and Wired. Key players were determined based on analyzing some of the aforementioned sources. Some of the key players were mentioned repeatedly in several sources and they have been presented in this brief.