Fintech banks Monzo and Starling see huge uplift in account switchers as confidence grows in disruptors

By Daniel Lanyon on 26th April 2019

Challenger Banks

The two digital banks were among the biggest net winners of another strong period of customers using the service.

Fintech banks Monzo and Starling see huge uplift in account switchers as confidence grows in disruptors

Monzo and Starling, two of the largest digital-only challenger banks, saw more than 10,000 customers use the current account switching service to open accounts with the two disruptors in first three months of 2019, figures show.

While HSBC was the bank with the highest switching gains, followed by Nationwide and NatWest, Monzo and Starling Bank had the fourth and fifth highest net gains respectively, showing the continuation of a growth in consumer confidence in challenger banks.

Monzo saw net gains of 5,953 with a total 6,549 switching to its service and 596 switching away. Starling saw 3,726 after 4,195 switched to it and 469 switched away.

Those under 35 are three times as likely to actively think about switching than those aged over 55, the same data show. Major financial life events, such as buying a property or starting a new job, also positively correlated with an increased switching consideration, according to the CASS report that accompanied the numbers.

In the past 12 months  there were 921,065 switches in total, including a total of 265,195 switches were completed in the first three months of 2019.

A Starling Bank spokesperson, said: “The latest CASS figures reinforce a broader change happening in retail banking. Switching levels continue to rise as customers not only hunt for better deals, but seek a new type of banking experience.”

“People want their bank to provide an easy, stress-free and 24-7 service, which is why we continue to increase our customer base every quarter.”

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