Ratio of bank customers won and loss in the UK Q2 2024

The rise of digital disruptors, challenger banks, and sustainability-focused financial institutions has transformed the banking landscape, attracting billions in investment capital. To effectively compete with established banks, these newcomers face a dual challenge: they must both drive substantial customer acquisition and successfully retain those customers over time. Customer retention rates among UK banks have historically shown significant variation between traditional and digital banks, with some digital banks achieving impressive customer loyalty while others have struggled to maintain their customer base. In the second quarter of 2024, Starling Bank saw a positive retention ratio, while Monzo experienced a negative one.

Biggest winners

In the second quarter of 2024, Danske Bank emerged as the leader in customer retention, achieving an impressive ratio of 5.3 new customers for every one lost. Santander also demonstrated strong performance, with more than three customers switching to their services for every departing customer. In stark contrast, AIB Group faced significant challenges, with a concerning ratio of 52 customers leaving for each new customer acquired.

Customer growth of neobanks

Digital-only banks have achieved remarkable growth in the European financial sector, with London-based Revolut leading the charge. As of March 2024, Revolut reported a significant milestone of over 40 million global customers, building on its strong momentum from 2023 when monthly app downloads surpassed two million.