Digital banks’ share of primary banking relationships fell in 2024, a survey has found, as traditional high street banks ramped up incentives and fine-tuned their tech offering to attract and retain customers.

Neobanks accounted for 5% of primary banking relationships in the UK in 2024, down from 6% in 2023, according to a survey of 4,000 adults commissioned by financial services insights business RFI — the first time the survey has recorded a year-on-year fall.

The proportion of Brits who had used at least one digital-only banking provider stood at 50% in 2024, a rise of only one percentage point compared to the previous year, a marked slowdown compared to the 14% rise recorded between 2021 and 2022.

Being offered an incentive to switch was the most common reason customers switched accounts, the survey found, while access to better rewards and poor customer service experiences were also frequently cited….