UK Banking Statistics: Trends and Insights in 2021

Banking statistics play a crucial role in the banking industry. Most critical decisions by executives rely heavily on reported key figures and their implications. For example, studying consumer spending and borrowing statistics helps banks strategise on how to take advantage of current market trends to increase profitability.

Aside from helping build new strategies, statistics related to banking can also help understand the pain points of customers. When they have significant data about these problem areas, banks can develop plans to address these issues.

Intriguing UK Banking Statistics and Facts (Editor’s Choice)

  • In 2020, four out of five Brits were using online banking.
  • According to Barclay, 88.6% of eligible payments in 2020 were contactless.
  • About 52% of customers have ill feelings towards their banks.
  • About 72% of executives believe there is a significant skill gap in technology among employees and executives.
  • Men are more likely to keep money in digital-only banks.
  • About 47% of adults in the UK who use digital banks keep £1,000 or less in their accounts.
  • The latest research shows that around 14 million British adults have at least one digital bank account.
  • Approximately 78% of British adults will use mobile apps for transactions by 2023.

UK Banking Industry Statistics

1. In 2020, four out of five Brits were using online banking.

(Finder)

Online banking trends in the UK show a substantial growth in the number of Brits taking advantage of online banking platforms. In 2005, online banking facts showed that only 27% of the British population had access to and used this banking method.

Over the years, however, the percentage of consumers taking advantage of online banking is steadily increasing, especially since the COVID-19 pandemic. By 2020, around 80% of Brits were making their transactions online.

2. Clients consider several facts about banking before choosing which bank they’ll use.

(Statista)

When investors and customers choose their depository bank, they look at it from multiple angles. Most of these factors revolve around determining a bank’s size relative to its competitors, an important measure for customers, especially large corporations. This is because large banks can accommodate wide-ranging services on a global scale.

Normally, banking facts dictate that customers look at a bank’s market capitalisation and total assets. These quantitative tools can be key indicators of the bank’s size. In the UK, over 33% of all banking assets come from just five banks. Unsurprisingly, these banks are the five largest banks in the UK to date.

3. According to the Bank of England statistics, withdrawals from ATMs declined because of the COVID-19 pandemic.

(Bank of England)

It might seem intuitive that cash withdrawals from ATMs would decline during the COVID-19 pandemic, but it may not be the only factor causing the shift. According to the Bank of England, the country has seen a significant decline in ATM withdrawals since 2019.

The decrease in volume and value is approximately 60% compared to 2019’s figures. Though the statistics are starting to pick up again in the months following the outbreak, it’s still significantly lower than previous accounts. In October 2020, withdrawals were still 30% to 40% lower than 2019’s record for the same period.

4. According to banking statistics of 2020, 61% of Brits have switched banks at some point in their lives.

(Finder)

A survey of UK citizens in 2020 showed a significant percentage of people who are susceptible to switching from one bank to another. Approximately 61% have already tried switching banks at some point in their lives. According to these UK banking sector statistics, Generation Z was the least likely to stick to their current bank. About 57% of the generation switched to a different bank within two years of turning 18.

5. According to Barclays, 88.6% of eligible payments are now contactless.

(Barclays)

Statistics on banking are seeing drastic changes in consumer behaviour as a result of the COVID-19 pandemic. For example, Barclays’s record shows that 88.6% of transactions and payments in 2020 were contactless. This is a 29% increase from previous records.

6. Banks in the UK saw increased corporate deposits at the beginning of the COVID-19 pandemic.

(S&P Global)

The UK banking statistics reported a drastic increase in bank deposits amid the pandemic. When the country went into its first lockdown, corporate bank deposits increased by more than 10%. As for consumer deposits, the increase occurred at a steadier pace. The latest records show a near 10% growth compared to the same period last year.

7. According to the latest banking statistics in the UK, about 52% of customers have ill feelings towards their banks.

(Finder)

According to the latest survey among Brits, more than half feel negatively towards their current day-to-day bank. There were two common reasons for feeling frustrated: 29% were dissatisfied with the savings rate, while 14% were discontent due to poor customer service.

8. About 72% of executives believe there is a significant skill gap in technology among employees and executives.

(Finance Digest)

Banking stats show that 72% of executives believe a gap between employee skills and technological advances exists. Banks collectively spend billions of pounds on training programmes annually. Unfortunately, executives think only 25% of this expenditure is effective. It’s no wonder the competition for talent in technologies like cloud security and management and artificial intelligence is getting stiff.

9. Banking statistics from 2020 show differences in consumer spending and savings behaviour.

(Barclays)

Banks have seen a fundamental shift in their customers’ behaviour since 2020. Not only are customers cutting back spending, but they’re also increasing their savings. The Bank of England reported that British households had a collective savings of £150 billion in 2020. This is the highest amount since the Bank of England started keeping track of British family savings.

10. The latest statistics on banking show men are more likely to keep money in digital-only banks.

(Finder)

A survey among British adults presents a disparity in the way men and women treat their digital-only banks. Based on statistics, 64% of men plan to use their digital-only bank accounts as their primary accounts compared to 60% of women planning to do the same.

The amount of money these two gender groups keep in their accounts makes the statistics more evident. Research finds that men, on average, have £3,649 in their accounts, while women keep only £2,717.

11. Bank of England lending statistics show a rise in lending activity among small and medium-sized enterprises.

(S&P Global)

Despite concerns on possible debt issues that lending will bring, small and medium-sized enterprises’ lending activity is on the rise. An example of this activity is the transport and communications sector, with small business lending trends showing a 58% increase in activity in these industries. Collectively, small and medium-sized businesses borrowed an additional £500 million at the start of the year. This results in a 25.8% annual growth rate in lending.

UK Banking Statistics: Trends and Insights in 2021

UK Online Banking Statistics

12. There is a significant increase in British adults who open digital-only bank accounts.

(Finder)

The latest online banking survey in the UK shows that about 27% of Brits own a digital-only bank account. That’s approximately 14 million people going digital at the beginning of 2021. This is a significant increase compared to online banking statistics in the UK two years ago. At the beginning of 2019, only 9% of Brits had a digital-only bank account.

13. Approximately 78% of British adults will use mobile apps for transactions by 2023.

(Global Business Outlook)

The UK mobile banking statistics indicate that 78% of British adults will use mobile apps for most of their financial transactions over the next few years. Consequently, most major banks are preparing to provide both online and offline facilities to clients. Popular banks like Barclays, HSBC, Natwest, and Santander already have mobile banking apps and facilities in place.

14. About 47% of adults in the UK who use digital banks keep £1,000 or less in their accounts.

(Finder)

The latest online banking statistics in the UK show that 47% of Brits only have £1,000 or less in their digital bank accounts. This means that many British adults don’t really use their digital bank accounts as their primary providers. 63% of British adults, however, say they plan to use their digital banks as their primary account in the future.

15. The majority of British adults use smartphones for online banking.

(Statista)

According to online banking usage statistics in the UK, smartphones dominate the battle for online banking access. At the beginning of 2014, only 31% of respondents used smartphones to access their online bank account. By 2020, around 58% were already using smartphones for online banking transactions.

16. About 41% of customers switch to online banking because of convenience.

(Finder)

Online banking statistics in 2020 show that customers still place a high value on convenience for banking transactions. A survey among British adults found that 41% of digital-only bank account holders made the switch because of convenience. For three consecutive years, the ease of doing business has been the primary driving force that pushes customers to go digital.

17. Geographic location seems to affect the adoption rates of digital banking.

(Finder)

Based on digital banking statistics in 2020, location plays a significant role in the digital transition. As expected, London has the highest rate, with 46% of its residents opening a digital-only bank account. South West England has the lowest rate, with only 16% of the people in the region transitioning to digital-only banks.

18. Internet banking statistics show a 117% increase in internet banking fraudulent activities.

(UK Finance)

As online banking gains momentum, frauds and scams are also becoming more rampant. In 2020, the banking sector reported an astounding 117% increase in fraudulent activities, leading to a £159.7 million loss in value. Most criminals carry out scams by impersonating a trusted organisation to trick people into disclosing personal information.

19. UK internet banking statistics show that people are growing more confident in using digital banking.

(Virgin Money UK)

Out of all the British digital account holders, 36% say they are more confident in using digital banking after trying it. That’s over one in three account holders. Further data shows that adults between 25 and 34 years old are more likely to feel comfortable with online banking.

Trends in Banking

20. UK banking giant HSBC thinks there will be a spike in instant messaging and 24-hour banking services.

(HSBC)

The COVID-19 pandemic is changing our daily lives, from meetings to shopping to banking. While some activities might revert to old patterns once the pandemic ends, some new trends might remain permanent.

HSBC believes digital banking is one of the future banking trends likely to stay long after the pandemic. The bank’s chief operating officer predicts a drastic increase in instant messaging and digital banking service transactions. From 10 million chat conversations in all of 2019, the bank forecasts 10 million conversations in just one month by 2024.

21. Around 14 million British adults have at least one digital bank account.

(Finder)

Based on digital banking trends published in 2021, over 14 million Brits own at least one digital bank account. Researchers believe that this number will increase by 10 million in the next five years. One possible reason for this rapid growth is the growing popularity of share trading accounts. Because of digital banks, customers can open a share trading account and trade stocks commission-free.

22. Domestic banking deals account for three-quarters of total banking activity.

(KPMG)

Financial experts released a consumer banking trends report in 2021, confirming that banking industry fundamentals remained sound despite the COVID-19 pandemic and the global economic slowdown of 2020. Among the global banking activities, about three-quarters came from domestic banking deals. Unfortunately, the global deal flow took a hit and declined by 26% in volume and 41% in value.

23. Rising fraud rates will become one of the UK banking trends of 2021.

(Finextra)

The COVID-19 pandemic is drastically changing the way we use digital tools, and this includes the banking industry. As people become more proficient in cashless payments and transactions, cybercriminals have also become adept in carrying out their schemes.

Many believe that more than half of the UK government’s Bounce Back Loan Scheme is lost to fraudulent claims. For this reason, thorough and robust cybersecurity measures are a must for banks and financial institutions.

UK Banking Statistics: Trends and Insights in 2021

Final Words About Banking Statistics in the UK

To understand the current financial system and trends, we have to delve into the statistics. These allow bank executives to process vital information to help them develop products and solutions that benefit customers. In doing so, they can gain more satisfied customers and increase profit.

With current internet banking statistics in the UK, banks need to open up more IT jobs in the UK and focus their efforts on developing online banking systems to improve their clients’ digital experience. Otherwise, they’ll lose their customers who prefer online and mobile banking to tech-savvy competitors.

The move towards online banking is further accelerated by the pandemic we’re facing, with customers preferring contactless transactions.

FAQ

The pandemic is pushing British adults to do cashless transactions more frequently. The result is a drastic increase in Brits using some form of the online banking system. Based on 2020 banking data and statistics, about 80% of adults in the UK have transitioned to online banking.

The number of customers of banks fluctuates every month. This is because many of the customers switch and pull out their money from one bank to another. However, the Lloyds Bank Group seems to have gained a foothold as the number one bank in the UK. As of 2020, the bank has over 25 million clients, making it the UK’s most popular bank.

According to the latest records, the UK has more than 300 banks operating and receiving deposits. This makes the UK’s banking industry the largest banking system in Europe and the fourth largest globally. However, the UK banking industry’s outlook is currently negative following the post-Brexit vote and global pandemic.

The Lloyds Banking Group may have the most customers, but it doesn’t have the largest market capitalisation. Currently, that title belongs to HSBC, which has £75.4 billion in market capitalisations.

It isn’t easy to know for sure how many bankers the UK has. Based on the currently accepted estimates, the UK banking industry is home to approximately 1.1 million bankers. Of these employees, 3,567 are earning more than £850,000 or close to €1 million. This might be a small percentage, but banking statistics show that the UK has the biggest number of high-earning bankers in all of Europe.