A comprehensive study conducted by SplitMetrics has unveiled significant growth in the fintech sector within the UK, particularly among neobanks, which have notably surpassed traditional legacy banks in app downloads for the first time. As the year progresses towards the festive season, neobanks have amassed approximately 71.78 million Android users, outpacing UK legacy banks, which currently have around 71.58 million users.
This rapid expansion for neobanks in 2024 has seen them gain roughly 18.6 million new users, while legacy banks have added 7.5 million. This trend is not limited to the UK; European neobanks have brought in an additional 2.9 million users, while European legacy banks have seen a growth of 8.4 million users during the same period.
The report indicates that the top five UK challenger bank apps in 2024 are Revolut, boasting 15.6 million users, followed by Monzo with 1.8 million. Other notable apps include Starling at 463,000 users, Virgin Money at 242,000, and First Direct at 194,000. In contrast, legacy banks like Lloyds, Barclays, and Halifax are witnessing substantial growth, adding 1.2 million, 1.1 million, and 1 million users respectively.
The findings also reveal a robust increase in trading apps, which have collectively added nearly 11 million new Android users globally, surpassing the previous record set in 2022. The apps in the top tier of trading and investment have achieved a total of 86 million lifetime users, with UK-based apps leading at 22.8 million. Among the most popular trading apps, Trade Republic led with 2.2 million new additions this year, followed closely by eToro and Robinhood.
In the money management sector, apps that facilitate budgeting and saving reported an influx of 1.1 million new Android users in 2024, exceeding SplitMetrics’ predictions for the year. This group of apps, including Plum and Moneybox, is averaging a growth rate of 98,000 new users each month.
The crypto sector has rebounded strongly after a challenging 2023, with current predictions estimating that downloads will approach a high of 7.2 million, having already achieved 5.6 million downloads in 2024 so far. Notably, crypto AI applications have also shown growth, surpassing previous highs with 556,000 new users.
Thomas Kriebernegg, General Manager of SplitMetrics, commented on the competitive nature of the finance sector in mobile markets. Speaking to App Developer Magazine, he stated, “Finance is one of the most competitive sectors in the mobile market, and it encompasses all kinds of types of apps; from retail banking through investment and crypto to B2B services.” He highlighted the ability of startups to disrupt traditional banking but also pointed out that legacy banks are working to meet consumer needs.
The findings from SplitMetrics portray a fintech landscape that is both diversifying and expanding, ultimately reshaping the financial services industry in the UK and beyond as it heads into 2025.
Source: Noah Wire Services