A decade ago, the word neobank would’ve likely conjured up visions of aliens running around in silver jumpsuits. You know, the way we always envision “the future”. And yet, in 2025, neobanks are challenging the traditional banking landscape across the world with features that help consumers manage money in new and executing ways — all without a silver jumpsuit in sight. Let’s take a look at what neobanks are and what some of the most popular players in the UK right now have to offer.
By definition, a neobank is a digital-first financial institution that provides banking services like current accounts and savings accounts to customers primarily through an app or online platform. Generally, neobanks do not have a physical branch location; instead opting to provide customer support online only.
Neobanks have taken the UK by storm in recent years. In fact, UK neobank app users have surpassed legacy banks for the first time. But what is it that makes them so popular?
Younger generations are much more digitally literate than previous banking users, meaning they’re happy to bank online rather than in a branch. In fact, many prefer online chatting rather than speaking face to face! In addition to a more digital-first mindset, neobanks have broken the mold of banking for the first time in years.
Neobanks are able to offer more than just simple deposits and transfers. Users enjoy features like spending categories, automatic round-ups, savings goals and spending analytics that help them manage money better and feel more connected to their finances. Plus, the user experience is often more engaging through the use of graphics, colour and tone of voice.
Monzo quickly became a household name as the uptake of their infamous banking interface grew rapidly. The most popular allure of Monzo is the ability to categorise money into “pots” to help you stay on top of your expenses. You can set money aside for bills, set an eating-out budget, or save for a big ticket purchase, all by using pots. Then, at the end of the month, intelligent spending reports show you where your money went.
Other Monzo features:
Starling Bank is another popular online bank in the UK changing the personal finance game. Offering business and personal banking, Starling’s app-based banking offers the ability to organise your money your way using “spaces”, put bills on autopilot, and spend overseas with no extra fees.
Other Starling features:
Global banking challenger Revolut is also a contender for the UK’s coolest bank — and that’s not just because they let you choose a debit card design based on your vibe, promise. The app-based bank offers many of the expected neobank features like round-ups, bill splitting and spending trends reports, as well as global capabilities that’ll make any globetrotter drool.
Other Revolut features:
Neobanks are getting a lot right when it comes to engaging consumers with their banking habits, and we reckon neobanking and PocketSmith are a match made in heaven. PocketSmith’s bank feeds connect to Monzo, Starling and Revolut, giving you even more control over your finances in one place.
Emma Edwards is a finance copywriter and blogger, on a mission to humanize the financial services industry by creating meaningful content that’s accessible and empowering. You’ll find her penning money tips at her blog, The Broke Generation, sharing financial insights on Instagram, or injecting life into content for her business clients.
