- Monzo increased its revenue from £154.2 million to £355.6 million.
- Starling Bank more than doubled its revenue from £216 million to £453 million.
- Revolut raised its y-o-y revenue by over 30%, hitting £850 million.
Yet while these banks are accelerating fast, it’s important not to lose context. Starling, Monzo and Revolut have 2.7 million, 7 million and 28 million customers respectively in 2022, while Barclays and HSBC have 48m and 39m. Yet while established banks still have the majority, it’s clear demand is steadily growing for a new type of banking experience – almost a quarter of the UK has an online-only bank account in 2023, with a further 10% intending to get one – and digital banks are fast encroaching on mid-tier customer volumes. Monzo had almost triple the number of customers compared to Metro Bank last year, with even the smaller Starling inching ahead of their 2.6 million clients.
In a world where customers demand to be able to open a new bank account, apply for a mortgage or switch their provider instantly, traditional banks need to adapt to the new normal, or else they might find themselves on the ropes. But to do this, they need to solve their data challenges, whether that’s fragmented customer data across different business units or inaccurate data in legacy systems. These new online-only banks benefit from being digital natives, free from the legacy data and technology baggage of more established institutions. If they want to catch up with digital innovation, banks need to tackle their ingrained data challenges.
An integrated data strategy – one based on consolidating customer data into a single source of truth - can help banks re-evaluate their data estate , helping them to target customers with personalised options, faster services and an all-round better banking experience. But how?
DING DING DING! Let’s get ready for a royal data rumble.