BuyShares, a research company in the U.K, presented a report indicting that U.K. challenger banks are leading in new customer net gains generated by account switches. Challenger banks had a 42.99% YTD, and banks recorded a collective net gain of 203,947 in new customers, according to a report in BuyShares.
Two challenger banks, Monzo and Starling, have a cumulative net gain of 87,683 new customers. Monzo has the highest net gain of 51,285, while Starling net gain stands at 36,398. During Q3, both Monzo and Starling were the biggest net gainers with 11,392 and 11,998 customers respectively.
The Buy Shares report also indicated that 41% of U.K. citizens found banking online more convenient, while 39% like the digital banks’ rates and another 28% are attracted to free transactions abroad.
“This year has also been unique for challenger banks due to the coronavirus pandemic. As one of the most hit regions in Europe, the U.K .authorities encouraged citizens to turn to digital banking,” the research in BuyShares said.” Such banking was deemed safe because customers can make payments without moving and interacting in banking halls. Furthermore, authorities discouraged the use of physical money to curb more infections.”