Ratio of bank customers gained and lost in the UK Q4 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 fourth quarter of 2024, both Monzo saw a positive retention ratio, but Starling Bank witnessed negative customer retention.  

Biggest winners

In the fourth quarter of 2024, Nationwide and Lloyds emerged as the leaders in customer retention, achieving an impressive ratio of 2.7 new customers for every one lost. The Co-operative Bank also demonstrated strong performance, with 1.6 customers switching to their services for every departing customer. In stark contrast, AIB Group faced significant challenges, with a concerning ratio of 39.6 customers leaving for each new customer acquired.

Customer growth of digital banks

Digital-only banks have achieved remarkable growth in the European financial sector, with London-based Revolut leading the charge. In November 2024, Revolut reported a significant milestone of over 50 million global customers, building on its strong momentum from 2024 when monthly app downloads surpassed two million.