The United Kingdom (UK)-based Nationwide Building Society is the largest building society in the world, with approximately 16.3 million members. As well as being a building society, Nationwide is one of the United Kingdom’s leading and most widespread financial institutes, specializing in household savings and mortgages. Market share of Nationwide products In 2024, Nationwide’s market share of the UK’s savings accounts market declined slightly, to 9.6 percent. Impressively, the Swindon-based company still held a UK market share of 11.5 percent in 2024. The group also saw an increasing market share of current accounts held in the UK in 2023. Assets and profit Between 2014 and 2023, the Nationwide Building Society saw total assets increase. The vast majority of its assets were through loans and advances to customers. Although the group has seen market shares increase in products offered, the building society has seen underlying profit decrease annually between 2016 and 2020 before rising again in 2021.

The gross national savings rate in the United Kingdom was forecast to continuously increase between 2024 and 2029 by in total 0.5 percentage points. The savings rate is estimated to amount to 14.81 percent in 2029. The savings rate here refers to the gross domestic saving by the state, private households, and corporations and is shown as a percentage of total gross domestic product (GDP).The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in more than 150 countries and regions worldwide. All input data are sourced from international institutions, national statistical offices, and trade associations. All data has been are processed to generate comparable datasets (see supplementary notes under details for more information).

Interest-bearing sight deposits was the type of savings deposit with the highest outstanding amount in the United Kingdom in 2024. The outstanding value of those types of deposits in the UK amounted to 911 billion British pounds that year, while the value of NS&I deposits was 233 billion British pounds.

This statistic illustrates the estimated number of savings accounts in the United Kingdom (UK) as of ************, by age group. In a survey conducted by the Financial Conduct Authority (FCA) in ************ it was calculated that approximately **** million adults within the UK held a savings account. Of this total the highest number of accounts of any age range were held by 45 to 54 year olds with approximately **** million. Over ** year olds held an estimated **** million current accounts, making up ** percent of the entire savings account market.

Retail Banking Market Outlook

According to our latest research, the global retail banking market size reached USD 2.89 trillion in 2024, reflecting the sector’s robust expansion as digital transformation and evolving consumer preferences continue to reshape the financial services landscape. The market is projected to grow at a CAGR of 4.7% from 2025 to 2033, reaching an estimated USD 4.36 trillion by 2033. This impressive growth trajectory is driven by a combination of technological innovation, increased digital adoption, and the expanding financial inclusion initiatives across both developed and emerging economies.

One of the primary growth factors fueling the retail banking market is the accelerated pace of digitalization. Financial institutions worldwide are investing heavily in digital platforms, mobile applications, and omnichannel experiences to meet the changing expectations of tech-savvy consumers. The proliferation of smartphones and high-speed internet access has empowered customers to manage their finances remotely, making banking services more accessible and convenient. As a result, banks are prioritizing seamless online and mobile banking experiences, which not only enhance customer satisfaction but also reduce operational costs. This shift towards digital banking is expected to remain a critical driver for the retail banking market over the next decade.

Another significant factor contributing to the market’s growth is the increasing emphasis on financial inclusion, particularly in emerging markets. Governments and regulatory bodies are collaborating with financial institutions to extend banking services to unbanked and underbanked populations. Innovative products such as microloans, digital wallets, and simplified savings accounts are being introduced to cater to these segments, thereby expanding the customer base for retail banks. Additionally, the adoption of advanced technologies like artificial intelligence, machine learning, and data analytics is enabling banks to offer personalized financial solutions, improve risk assessment, and streamline operations, further propelling market expansion.

The competitive landscape in the retail banking market is also being reshaped by the entry of non-traditional players, including fintech firms and digital-only banks. These challengers are leveraging cutting-edge technology and agile business models to deliver innovative banking solutions, often at lower costs than traditional banks. This heightened competition is compelling established banks to accelerate their digital transformation initiatives and forge strategic partnerships to maintain their market share. Furthermore, evolving regulatory frameworks and open banking initiatives are fostering collaboration and innovation within the sector, creating new opportunities for growth and differentiation.

From a regional perspective, the Asia Pacific region continues to dominate the retail banking market, both in terms of market size and growth potential. Rapid urbanization, rising disposable incomes, and a burgeoning middle class are driving demand for retail banking services across countries such as China, India, and Southeast Asian nations. North America and Europe remain mature markets with high penetration rates, but ongoing digital transformation and the adoption of advanced banking technologies are sustaining steady growth. Meanwhile, Latin America and the Middle East & Africa are witnessing increased investments in banking infrastructure and digital platforms, paving the way for future market expansion.

Service Type Analysis

The retail banking market is segmented by service type into savings and checking accounts, loans, credit cards, mortgages, and others. Savings and checking accounts remain the cornerstone of retail banking, serving as the primary entry point for most customers. The demand for these accounts is being buoyed by increasing financial literacy, government-led financial inclusion programs, and the integration of digital onboarding

The UK consumer banking market, encompassing a broad range of services from personal loans and mortgages to savings accounts and credit cards, is a dynamic and competitive landscape. While precise figures for market size and CAGR are absent, a reasonable estimate based on industry reports and similar developed economies suggests a 2025 market value exceeding £500 billion. The market's growth is propelled by several key drivers. Rising disposable incomes and a growing population fuel demand for financial products. Technological advancements, such as open banking and fintech innovations, are reshaping customer expectations and driving efficiency within the industry, leading to the adoption of digital banking and personalized financial management tools. Furthermore, changing regulatory landscapes, focusing on increased consumer protection and financial inclusion, are influencing market dynamics. However, the market faces certain headwinds. Intense competition among established players and emerging fintech companies keeps profit margins under pressure. Economic uncertainty, particularly fluctuating interest rates and potential recessionary periods, can significantly impact consumer spending and borrowing behavior, affecting the overall market growth. Stringent regulatory compliance and cybersecurity threats pose additional challenges for banks. Despite these constraints, the long-term outlook for the UK consumer banking market remains positive, driven by the sustained need for financial services, technological innovation, and evolving consumer preferences. Segmentation within the market, based on product type, customer demographics, and geographical location, presents opportunities for targeted growth and market penetration. The listed banks, including established players like Allied Irish Bank (UK) and newer entrants like Metro Bank, are constantly adapting their strategies to navigate this dynamic environment.

Nearly all the outstanding savings in cash ISAs in the United Kingdom (UK) were located in monetary financial institutions in 2024. That term can refer to banks and building societies. Meanwhile, the estimated outstanding value of cash ISAs held in national savings and investments (NS&I) amounted to over five billion British pounds that month. The overall value of cash ISAs was much higher in 2024 than a year earlier.

The benchmark interest rate in the United Kingdom was last recorded at 4.25 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2024, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates in an effort to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

The non-depository financing industry's revenue has contracted at a projected compound annual rate of 2.1% over the five years through 2024-25. The COVID-19 outbreak caused a large drop in borrowing in 2020-21 as consumers faced a lack of spending opportunities, outweighing the gains from businesses taking out additional loans to stay afloat. The industry has also faced stronger regulatory oversight to combat the proliferation of overly risky and expensive loans. The cost-of-living crisis has caused consumer lending to swell as households rely on short-term borrowing to make up for weakened savings and costs outpacing wages. Soaring interest rates have caused the cost of mortgages to skyrocket, damaging revenue as buyers pull back and lenders are more cautious. The Non-Depository Financing industry's revenue is estimated to climb by 1.7% in 2024-25 – and is expected to total £6.7 billion. This comes from the much-anticipated sliding down of interest rates that will aid the mortgage market and big returns from newer sectors like OpenAI and sustainable technologies. Industry revenue is expected to swell at a compound annual rate of 2.4% to £7.6 billion over the five years through 2029-30. The need for credit is set to be supported by the previous erosion of savings from spiked inflation, leading to more loans needed for sizeable investments as confidence rebounds. Non-depositary financing companies will continue facing stiff competition from other types of lenders, like peer-to-peer lenders. The regulation constricting payday loans will continue to push services towards a lower margin and higher volume approach, aiding those with lower credit scores but dented industry profit. The high cost of mortgages and economic headwinds will settle and start to rebuild the housing market, supporting revenue.

The UK pension fund market, valued at approximately £4.25 billion in 2025, is projected to experience steady growth, driven by factors such as an aging population, increasing awareness of retirement planning, and government initiatives promoting pension saving. The defined contribution (DC) segment is expected to dominate the market due to its flexibility and employer contribution matching options. However, defined benefit (DB) plans will continue to hold significant share, particularly among large corporations offering traditional pension structures. The market's growth is tempered by regulatory changes aimed at increasing transparency and protecting pensioner funds, and the ongoing impact of economic volatility on investment returns. Competition is intense, with major players like Universities Superannuation Scheme (USS), NatWest Group Pension Fund, and others vying for market share. Technological advancements, such as the implementation of robo-advisors and digital platforms, are streamlining operations and improving accessibility for individual investors, further influencing market dynamics. Growth is also influenced by fluctuations in interest rates and the performance of underlying investment assets, impacting the overall value of pension fund assets. The expansion of hybrid and other innovative plan types caters to diversified needs and risk profiles, fostering market diversification. Geographical distribution within the UK is fairly concentrated, with London and other major cities holding a significant proportion of the market. Looking forward, the UK pension fund market’s growth trajectory will likely be influenced by several factors. Government policies related to auto-enrollment, changes in tax legislation affecting pension contributions, and improvements in financial literacy amongst the population will all play a role. Furthermore, the increasing adoption of sustainable and responsible investment strategies, driven by growing environmental, social, and governance (ESG) concerns, will likely reshape investment decisions within the industry. The market’s future success also hinges on the successful navigation of global economic uncertainties and effective risk management strategies employed by pension funds. The continued innovation in investment products and pension administration technology will remain crucial to fostering growth and attracting new investors. Recent developments include: In January 2024, Aptia, a fresh player in the pensions, health, and benefits administration sector, has been formally introduced. The company's inception follows its initial announcement in June 2023, which came after Bain Capital Insurance acquired the UK pension administration and US health and benefits administration segments of Mercer., In June 2023, NatWest Group finalized the purchase of a majority stake in Cushon, a fintech specializing in workplace savings and pensions. The agreement, reached in February 2023, saw NatWest Group acquiring 85% of Cushon for Euro 144 million (USD 157.37 million), while Cushon management retained the remaining 15%. This acquisition received approval from the Financial Conduct Authority (FCA) in May.. Key drivers for this market are: Shift to Capital Light Products from Traditional Products, A Push for Technology-Led Engagement. Potential restraints include: Shift to Capital Light Products from Traditional Products, A Push for Technology-Led Engagement. Notable trends are: Ageing population rate in United Kingdom affecting United Kingdom Pension Funds Market.

The European Challenger Banks Market is segmented by services offered (Payments, Savings Products, Current Account, Consumers Credits, Loans and Others), By end-user type (Business Segment and Personal Segment) and By Geography (UK, Germany, France, Italy, Spain, Netherlands, and Rest of Europe). The Market Size and Forecasts Are Provided in Terms of Value (USD Million) for All the Above Segments.

Over the five years through 2025-26, UK banks' revenue is expected to climb at a compound annual rate of 4.8% to £136 billion, including an anticipated hike of 3.6% in 2025-26. After the financial crisis in 2007-08, low interest rates limited banks' interest in loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks like Lloyds have shut the doors of many branches and made substantial job cuts. Following the COVID-19 outbreak, the Bank of England adopted aggressive tightening of monetary policy, hiking interest rates to rein in spiralling inflation. The higher base rate environment lifted borrowing costs, driving interest income for banks, which reported skyrocketing profits in 2023-24. Although profit grew markedly, pressure to pass on higher rates to savers and fierce competition weighed on revenue growth at the tail end of the year. However, the prospect of rate cuts in 2024-25 saw many banks lower their savings rates, aiding revenue growth. In 2025-26, although further interest rate cuts are on the horizon, revenue is set to grow, due to lower borrowing costs driving activity in the housing market. Banks have also reduced their exposure to interest rate cuts through structural hedges, which lock in rates when they fluctuate. The FCA’s investigation into motor commissions has been a cause for concern over recent years, with banks like Lloyds and Santander ramping up provisions over 2024-25 in preparation for large payouts, if the Supreme Court deems banks were carrying out illegal activities. Over the five years through 2030-31, industry revenue is forecast to swell at a compound annual rate of 4% to reach £165.8 billion. Regulatory restrictions, tougher stress tests and stringent lending criteria will also hamper revenue growth. Competition is set to remain fierce – both internally from lenders that deliver their services exclusively via digital channels and externally from alternative finance providers, like peer-to-peer lending platforms. The possibility of legislation like the Edinburgh reforms will drive investment and lending activity in the coming years, if introduced. However, concerns surrounding the repercussions of less stringent capital requirements and the already fragile nature of the UK financial system pose doubt as to whether any significant changes will be made.

Based on our proprietary datasets, this report analyzes the UK’s wealth and retail savings and investments markets, with a focus on the high net worth (HNW) segment. This includes the overall affluent market size (both by the number of individuals and the value of their liquid assets) as well as a breakdown of liquid vs. illiquid HNW holdings. The report also provides analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by asset classes including deposits, mutual funds, equities, and bonds. Read More

The UK Fintech market, valued at £14.74 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 10% from 2025 to 2033. This expansion is driven by several key factors. Increased smartphone penetration and digital literacy amongst consumers fuel the adoption of mobile banking and payment apps like Revolut and Monzo. The rise of open banking initiatives empowers third-party providers to access customer financial data, fostering innovation in personalized financial services, including digital lending and investment platforms such as Nutmeg and Moneybox. Furthermore, a regulatory environment that encourages innovation, coupled with a thriving startup ecosystem, is attracting significant investment and driving competition within the sector. The market’s segmentation reveals strong growth in money transfer and payment services, fueled by international remittance needs and the increasing preference for contactless and digital transactions. Growth in digital lending is also significant, driven by the demand for accessible and quick loan solutions. However, challenges remain, including cybersecurity concerns, regulatory hurdles around data privacy, and the potential for market consolidation as larger players acquire smaller fintech firms. The increasing adoption of AI and machine learning to enhance risk assessment and customer service contributes to market growth and differentiation. The forecast for the UK Fintech market through 2033 suggests continued upward trajectory, although the pace of growth might moderate slightly in the later years due to market saturation and increased competition. The continued integration of innovative technologies such as blockchain and cryptocurrency will redefine service offerings, potentially creating new market segments. Businesses are increasingly adopting Fintech solutions for streamlined payment processing and improved financial management. The expanding usage of AI and machine learning in fraud detection and personalized financial advice will further drive market growth and enhance customer experience. The continued success will hinge on addressing regulatory complexities, maintaining consumer trust, and adapting to the evolving needs of a dynamic market landscape. This report provides a detailed analysis of the dynamic United Kingdom Fintech market, covering the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, this study offers valuable insights into market size, trends, and future projections, focusing on key players like Revolut, Monzo, and Wise (formerly TransferWise). The report utilizes a robust methodology incorporating historical data (2019-2024) and forecasts (2025-2033) to deliver actionable intelligence for stakeholders in this rapidly evolving sector. Recent developments include: September 2023: Moneybox, the award-winning saving and investing platform, launched a new market-leading Cash ISA, offering 4.65% AER (variable) on deposits of GBP 500 (USD 629.99) or more. Designed to encourage people to grow their savings tax-free over the medium-long term, this new Cash ISA allows up to three withdrawals within 12 months from the account opening date without compromising the attractive interest rate., March 2023: The fintech formerly known as Transferwise is continuing its evolution as it rolled out its rebrand. Wise's new look, which comes as it hits 16 million customers worldwide, was created to reflect its global reach, drawing inspiration from the currencies, languages, and places it serves worldwide. With around six million active customers moving a massive EUR 100 Billion (USD 107.17 Billion) annually, the company is onboarding 100,000 new users every week as it works on its mission to make a move “move faster, more conveniently, and eventually free.". Key drivers for this market are: Government Support is Driving the Market, Strong Financial Ecosystem is Driving the Market. Potential restraints include: Government Support is Driving the Market, Strong Financial Ecosystem is Driving the Market. Notable trends are: Rising Payments and Digital Banking in the United Kingdom.

The UK pension fund market, valued at £4.25 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.22% from 2025 to 2033. This growth is driven by several key factors. The aging population and increasing life expectancy necessitate larger pension provisions, fueling demand for robust and diversified investment strategies within pension funds. Furthermore, government regulations promoting retirement savings and auto-enrollment schemes contribute significantly to market expansion. Stringent regulatory compliance requirements also drive demand for sophisticated investment management and risk assessment services. Competitive pressures among fund managers and the constant need for improved investment returns are shaping the market landscape. While market fluctuations and global economic uncertainty present potential challenges, the underlying demographic trends and regulatory environment strongly support continued market expansion. Significant players in this market include Universities Superannuation Scheme (USS), NatWest Group Pension Fund, Electricity Supply Pension Scheme (ESPS), BT Pension Scheme (BTPS), Railway Pension Scheme (RPIL), HSBC Bank Pension, Local Government Pension (LGPS), Pension Protection Fund (PPF), Barclays Bank UK Retirement Fund, and Lloyds Bank Pension Scheme. However, the market also encompasses numerous smaller pension funds, highlighting a diverse participant base. The market’s growth is expected to be influenced by evolving investment strategies, technological advancements in fund management, and the increasing integration of ESG (environmental, social, and governance) considerations into investment decisions. The ongoing need for sustainable and responsible investment options presents both opportunities and challenges for pension fund managers. Key drivers for this market are: Shift to Capital Light Products from Traditional Products, A Push for Technology-Led Engagement. Potential restraints include: Shift to Capital Light Products from Traditional Products, A Push for Technology-Led Engagement. Notable trends are: Ageing population rate in United Kingdom affecting United Kingdom Pension Funds Market.

"Wealth in the UK: Sizing the Market Opportunity 2017" analyzes the UK's wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets. Read More

The European challenger bank market is experiencing robust growth, driven by increasing demand for digital banking services, innovative product offerings, and a desire for greater customer-centricity. The market, valued at approximately €150 million in 2025 (estimated based on a high-growth market and provided CAGR of over 10%), is projected to expand significantly over the forecast period (2025-2033). This expansion is fueled by several key factors: the widespread adoption of smartphones and mobile banking apps, a growing preference for streamlined and personalized banking experiences, and the increasing financial inclusion efforts reaching underserved populations. The strong CAGR of over 10% suggests considerable market dynamism and potential for further disruption. Key segments driving growth include payments, consumer credit, and current accounts, particularly within the personal segment. While regulatory hurdles and competition from established players pose some challenges, the ongoing technological advancements and customer preference for digital-first banking experiences are expected to overcome these restraints. The dominance of established banks is being challenged by challenger banks' agile business models and focused product offerings. The UK, Germany, and France represent the largest national markets within Europe, benefitting from high levels of digital adoption and a tech-savvy population. The competitive landscape is fiercely contested, with numerous players vying for market share. Established challengers like Revolut, Monzo, and N26 are aggressively expanding their product offerings and geographical reach. However, the market is also seeing the emergence of niche players catering to specific customer segments or offering highly specialized financial products. This competitive environment is accelerating innovation and ultimately benefiting consumers through enhanced product features, improved customer service, and increased transparency. The continued expansion into new European markets, the introduction of advanced technologies like AI and open banking, and the evolving regulatory landscape will all significantly shape the future of this dynamic market. The long-term outlook for the European challenger bank market remains positive, with substantial growth opportunities across various segments and geographies. Recent developments include: In October 2022, OakNorth Bank acquired a 50% stake in property lender ASK Partners. The company has lent in excess of £1bn across over 90 transactions through its online platform., In July 2021, Revolut, a London-based financial app that provides banking, investing, currency transfer, and other money management services, confirm a fresh USD 800 million in funding at a USD 33 billion valuation to supercharge its financial services super app.. Notable trends are: Challenger Banks are Gaining Traction in Europe.