So-called challenger banks are changing the way that the British public uses their bank accounts. These challenger banks, which began appearing in numbers after the last global financial crisis, use cutting-edge technology to offer digital-only banking as opposed to traditional High Street banking. Mobile banking is also becoming increasingly popular.
In the past, most people just had one bank account. Some people have two; namely a current account and one savings account. But with the poor interest rates, many traditional banks offer on savings accounts - especially those with instant or fast access to savings - a lot of people invest their savings elsewhere.
The latest trend in personal banking
The latest trend in public banking is to have a conventional bank account and a challenger bank account. The conventional account is used for paying wages into and settling standard repeat bills for things like mortgage repayments and paying recurring utility bills. The challenger bank account is used for discretional spending - buying gadgets, fashion clothing, holidays etc.
The growth of challenger banks is impressive. Take Monzo (https://monzo.com/) as an example. They are experiencing a new account sign-up rate of 55,000 new customers each week, and they are just one of many new challenger banks. They are not only offering the public fast, efficient new service; their expansion is also creating new recruitment and career opportunities.
One of the things that have held some people back from opening accounts with challenger banks is a misunderstanding of cash availability. They think that because these banks are digital rather than bricks and mortar, they can only use them for in-store or online transactions. This is not true. They also offer cash withdrawal services via ATMs.
The number of free withdrawals you can make varies from bank to bank, but this is one of the many things you can find out by clicking on the link in the next paragraph.
Best challenger banks
Some of the best challenger banks in Europe and the UK (according to LearnBonds) are as follows:
• N26 - Based in Germany and especially designed to make saving and sending money simpler https://n26.com
• Revolut - Excellent for keeping control of your cards https://www.revolut.com/
• Monese - Makes a cinch of setting up direct debits https://monese.com/
• Starling - First class for specific saving plans https://www.starlingbank.com/
• Monzo - Enables you to track your expenses with ease https://monzo.com/
• Atom Bank - Great rates on fixed-term deposits https://www.atombank.co.uk/
• Tandem - Very good for creating and managing budgets https://www.tandem.co.uk
• Curve - Your money deposits couldn’t be safer https://www.curve.app/en-gb/
• Yolt - Extremely user-friendly interface https://www.yolt.com/