What motivates customers of app-only banks?
App-only banks have gained some ground in the UK over the last decade, with companies like Monzo, Starling, Revolut and Chase promising to challenge the industry status quo and provide an alternative to the services offered by traditional institutions.
But now that these banks are more established and no longer the upstart startups they once were, it’s worth taking a look at their customers. What, if anything, draws them to fintech banks?
Data from YouGov Profiles shows that the most popular motivator for customers of four key app-only banks (Monzo, Starling, Chase, and the newly-licensed Revolut) is interest rates/value for money (57%); this is a lesser concern for customers of traditional banks (42%).
The next most important motivator in choosing a bank is a trustworthy brand: some 49% of fintech customers cite this option compared to 48% of those who use high street banks. Building this trust will be critical for app-only banks if they hope to swipe any more market share from the older institutions. Our data shows that just 24% of Monzo customers, 23% of Starling customers, 20% of Chase customers and 7% of Revolut customers have it as their main account. Are these app-based banks being used more as apps than banks – e.g. for saving pots and other doodads instead of paying in one’s salary? (In all fairness to Revolut, they only acquired a banking license – with restrictions – in July 2024).
Online accessibility, perhaps unsurprisingly, is a motivator for 45% of fintech customers – more than it is for customers of traditional banks, 38% of whom say the same.
Both groups are easily split when it comes to the ease of using the website (29% fintech; 28% app-only).
Fintech customers are more motivated by special offers (24% vs. 15%) and less motivated by the accessibility of a bank branch (21% vs. 33%) – but crucially, a fifth still are. This probably reflects the fact that, for most fintech customers, an app-only bank is a secondary provider – with the primary current account belonging to a more old-fashioned institution with a physical location.
App-only customers may be more likely to prioritise the mobility of money: 15% say international capability is a reason to choose a bank compared to 8% of high street customers.
Methodology
YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for MARKET is nationally representative of the online population and weighted by age, gender, education, region, and race. Learn more about Profiles.
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