Digital banks have changed the way people manage money. No branches, no telephone queues, everything handled through a mobile app.
Compared with high street banks, they offer a wider range of features in one place. Monzo is the clearest example, packing savings pots, spare change round-ups, investment and pension options, spending analytics, bill-splitting, and cashback rewards into a single app. Traditional banks often require multiple accounts to access the same tools.
Some customers still prefer the reassurance of a long-established bank, seeing bricks-and-mortar branches as a symbol of security. Yet the reality is that all banks operate in much the same way behind the scenes. The main distinction is that high street banks still maintain some physical branches, though these are disappearing fast as closures accelerate and in-person services are pared back.
Which digital bank comes out on top
On performance, customer satisfaction and the strength of its mobile offering, Monzo leads the pack. It is consistently ranked as the best digital bank in the UK.
Chase follows in second place. Backed by J.P. Morgan, one of the world’s largest investment banks, Chase has rapidly built market share in the UK.
In third place sits Starling. Once the frontrunner, Starling has lost momentum as feature development has slowed and customer service ratings have dipped, leaving it behind Monzo and Chase.
Other digital players in the market include Revolut, Wise, Smile, First Direct, Nomo, Monese and Tandem.
Digital Banks
Monzo^ is a UK-based digital bank that has rapidly gained popularity for its user-friendly mobile app and innovative financial features. Founded in 2015, it operates entirely online without physical branches, offering a range of services including current accounts, savings options, and personal loans .
Key features of Monzo include:
- Pots: Users can create multiple ‘Pots’ to separate and manage their money for different purposes, such as saving for a holiday or setting aside funds for bills .
- Savings Pots: These allow users to earn interest on their savings, with various options available to suit different needs .
- Investment Pots: Monzo offers investment options through its Investment Pots, allowing users to invest in a range of funds .
- Instant Notifications: The app provides real-time notifications for transactions, helping users stay on top of their spending.
- Fee-Free Overseas Spending: Monzo offers fee-free spending abroad, making it a popular choice for travelers .
- Subscription Services: Monzo offers premium accounts with additional features, such as enhanced savings rates and other perks .
As of 2025, Monzo has over 12 million customers and has expanded its services to include business banking, personal loans, insurance, and pensions through partnerships .
Starling Bank^, founded in 2014, has rapidly expanded its services to include personal and business banking, offering a range of features designed to simplify financial management. As of March 2025, Starling reported a customer base of 4.6 million accounts, reflecting a 10% increase from the previous year .
Key Features:
- Spaces: Allow users to set aside money for specific goals, such as savings or bill payments.
- Round Ups: Automatically save spare change from transactions by rounding up to the nearest pound.
- Fixed Rate Savings: Offer competitive interest rates on savings, including a 2.5% fixed rate for business customers with balances over £2,000.
- Business Banking: Provide services to over 500,000 UK businesses, including business accounts and lending options.
- Marketplace: Integrate with third-party services for insurance, bill management, and other financial tools.
Chase^, launched in 2021 as JPMorgan’s digital-only bank in the UK, has rapidly gained traction, amassing over 2 million customers and managing approximately £15 billion in deposits .
The bank offers a fee-free current account with features like 1% cashback on select UK spending categories, a high-interest savings account, and 24/7 UK-based customer support.
In 2025, Chase UK introduced its first credit card, offering 0% interest on purchases for up to 15 months and no foreign exchange fees, though it lacks cashback rewards . The bank is targeting profitability by 2025 and has expanded its product offerings to include credit cards and plans for European expansion.
Revolut^ is a UK-based digital bank that has grown into a major financial app offering current accounts, savings, investments, insurance, and cryptocurrency trading. As of early 2025, it serves around 10 million customers in the UK and over 50 million globally.
Key Features
- Multi-Currency Accounts: Users can hold and exchange multiple currencies at competitive rates for seamless international transactions.
- Savings and Investments: Revolut offers high-interest savings accounts, stocks and shares ISAs, and access to ETFs from major providers.
- Cryptocurrency Trading: The app allows buying, selling, and holding a range of cryptocurrencies.
- Insurance and Lifestyle Services: Travel insurance, device protection, and other lifestyle services are available through the app.
As of August 2025, Revolut holds a UK banking licence with restrictions from the Prudential Regulation Authority (PRA). This restricted licence, granted in July 2024, places Revolut in the “mobilisation” phase, allowing the company to build out its UK banking operations before receiving full authorisation.
Despite the restricted licence, Revolut continues to operate under its existing e-money licence, which allows it to offer certain financial services. However, the full UK banking licence would enable Revolut to offer a broader range of services, including holding customer deposits and providing loans.
First Direct^ is a UK-based telephone and internet bank, operating as a division of HSBC. Established in 1989, it offers a range of personal banking services, including current accounts, savings, loans, credit cards, and mortgages.
Key Features
- 24/7 UK-based customer support: First Direct is known for its accessible and responsive customer service, available around the clock.
- Mobile and online banking: Customers can manage their accounts, make payments, and access services through a secure online platform and mobile app.
- Comprehensive product range: Offers a variety of financial products, including current accounts, savings accounts, loans, credit cards, and mortgages.
- Financial Services Compensation Scheme (FSCS) protection: Deposits are protected up to £85,000 per individual (£170,000 for joint accounts), providing peace of mind to customers.
Nomo^, launched in 2021, is a UK-based digital bank offering Sharia-compliant financial services, tailored for individuals with international lifestyles. It provides a range of banking products through a user-friendly mobile app.
Key Features
- Multi-Currency Accounts: Hold and manage balances in GBP, USD, EUR, AED, KWD, and SAR, facilitating seamless international transactions.
- Fee-Free Spending: Use your Nomo Mastercard globally without incurring foreign transaction fees.
- Instant Access Saver: Earn competitive expected profit rates on savings with daily profit accrual and no lock-in periods.
- Fixed Term Deposits: Invest in fixed-term deposits across multiple currencies with attractive profit rates.
- Property Finance: Access Sharia-compliant financing options for purchasing or refinancing residential properties in the UK.
- Digital Banking: Manage all banking activities, including transfers and account settings, through the Nomo mobile app.
Tandem^ is a UK-based digital bank offering a range of financial services through its mobile app. Originally founded in 2014, Tandem acquired Harrods Bank in 2017, which allowed it to operate under a full UK banking licence.
Tandem Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority. Customer funds are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
Key Features
- Current Accounts: Offers flexible current accounts with contactless debit cards and mobile payments.
- Savings Accounts: Provides a variety of savings options, including instant access and fixed-term accounts.
- Green Finance: Specialises in financing for environmentally friendly products and services.
- Mobile Banking: Access and manage your account through a user-friendly mobile app, available for both iOS and Android devices.
- Customer Support: Provides responsive customer service through various channels, including in-app chat and phone support.
Smile^ is a UK-based digital bank that operates as a trading division of The Co-operative Bank. Established in 1999, Smile was the UK’s first fully digital bank, offering a range of financial services through its online platform.
Key Features
- Current Accounts: Offers flexible current accounts with contactless debit cards and mobile payments.
- Savings Accounts: Provides a variety of savings options, including instant access and fixed-term accounts.
- Credit Cards: Offers credit card products with competitive interest rates and rewards.
- Loans and Mortgages: Provides personal loans and mortgage products to suit various customer needs.
- Insurance: Offers a range of insurance products, including home and travel insurance.
- Mobile and Online Banking: Access and manage your account through a secure mobile app and online banking platform.
- Customer Support: Provides responsive customer service through various channels, including in-app chat and phone support.
Digital Banks without Banking License
The following banks and money apps operate under an e-money licence rather than a full UK banking licence. This means they can issue electronic money and provide payment services such as digital accounts, transfers, and prepaid cards, but they cannot offer traditional banking products like loans or credit cards. Customer funds are held in safeguarded accounts with partner banks to ensure protection, even though the company itself is not a fully licensed bank.
Wise^ is a UK-based fin-tech company that provides international money transfer and multi-currency account services. Originally known as TransferWise, the company rebranded in 2021 to reflect its broader range of financial services.
Key Features
- Multi-Currency Account: Hold and manage balances in over 40 currencies, with local bank details in multiple countries, facilitating seamless international transactions.
- Wise Debit Card: A Mastercard® debit card linked to your Wise account, enabling spending in multiple currencies without foreign transaction fees.
- International Money Transfers: Send money to over 80 countries at the mid-market exchange rate, with transparent and low fees.
- Jars: A feature that allows users to set aside money for specific goals or expenses, helping with budgeting and saving.
- Interest and Investment Options: In certain regions, Wise offers interest-bearing accounts and investment products, such as money market funds, through its subsidiary, Wise Assets Limited.
- Business Accounts: Wise provides multi-currency accounts for businesses, allowing them to manage international payments and expenses efficiently.
Monese^ is a digital financial services provider offering mobile-first accounts designed for individuals who may not have access to traditional banking.
Established in 2013, Monese operates under an e-money licence issued by the Financial Conduct Authority (FCA) in the UK. This allows Monese to provide electronic money and payment services, but not traditional banking products like loans or full deposit-taking.
Key Features
- Multi-Currency Accounts: Hold and manage balances in multiple currencies, facilitating seamless international transactions.
- Mobile Banking: Access and manage your account through a user-friendly mobile app, available for both iOS and Android devices.
- Instant Transfers: Send and receive money instantly between Monese accounts, regardless of the currency.
- Direct Debits: Set up and manage Direct Debits directly from the app, making bill payments straightforward.
- Budgeting Tools: Utilize spending overviews and budgeting features to track and manage your finances effectively.
- Physical and Virtual Cards: Receive a contactless debit card for in-store and online purchases, with the option to add it to digital wallets like Apple Pay or Google Pay.
- International Transfers: Send money abroad using real-time, wholesale exchange rates, often at lower fees compared to traditional banks.
Pockit^ is a UK-based digital money app focused on providing fast, accessible banking services for people who struggle to use traditional banks. It offers prepaid accounts and a Mastercard, enabling everyday spending and bill management without the need for a credit check.
Key Features
- Prepaid Mastercard®: Use for contactless payments, online shopping, and ATM withdrawals.
- Simple Top-Ups: Add money via bank transfer, debit card, or cash at PayPoint locations.
- Direct Debits: Set up and manage regular payments through the app.
- Budgeting Tools: Track spending and set aside money for bills or personal goals.
- Cashback Rewards: Earn cashback at selected retailers when using your Pockit card.
- Cash Advanced: Cash advance to help build a better credit score.
- Mobile-First Banking: Manage your account entirely from the Pockit app.
Suits Me^ is a UK-based digital financial service provider offering prepaid spending cards, current accounts, and a range of other pseudo-bank financial services. The mobile-first service aimed to make money simple for low-income ‘unbanked’ customers, with products and services tailored specifically for them.
Key Features
- Prepaid Mastercard: A contactless card that can be used for online and in-store purchases, as well as ATM withdrawals.
- Easy Top-Ups: Add money via bank transfer, debit card, or cash at over 27,000 PayPoint locations.
- Direct Debits: Set up and manage direct debits for bill payments.
- Mobile App: Access and manage your account through a user-friendly mobile.
- Cashback Rewards: Earn up to 8% cashback at selected retailers when using your Suits Me card.
- No Credit Checks: Open an account without the need for a credit check.
- Financial Inclusion: Designed for individuals who have been excluded from traditional banking services.
