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challenger banks

  • High street banks’ SME lending comeback inches forward 

    September 11, 2025

    High street banks’ return to small- and medium-sized enterprises (SME) inched onwards in the second quarter.  The big banks have turned back to the area as the government clamps down on smaller firms’ difficulty accessing finance. Top bosses were summoned earlier this year for talks with ministers covering how to improve lending to SMEs. In [...]

  • Challenger banks face ‘profitability trap’ at growth crossroads

    September 8, 2025

    The UK banking sector faces a profitability roadblock that will give the industry’s challengers an “existential” turning point.  Fresh data from KPMG suggests the industry’s average return on equity will fall to eight per cent come 2027 down from 13 per cent four years prior. This is set to spark an £11bn reduction in pre-tax [...]

  • UK banks carry out sweeping branch closures as customers go digital

    August 22, 2025

    Some of the biggest traditional banks have shut more than one in three of their UK branches over the past five years as they turn away from the high street and dash to bulk up their digital offerings. Data from the Office of National Statistics (ONS) shows the number of bank, credit union and building [...]

  • Chetwood Bank surpasses £5bn after strong growth

    July 25, 2025

    Chetwood Bank’s balance sheet has exceeded £5bn for the first time, City AM can reveal, after growing by £1bn in just three months. The digital challenger bank surpassed the milestone in July, with chief executive Paul Noble noting the bank’s “great growth trajectory” and expanding customer base to the rise, after the balance sheet stood [...]

  • British Business Bank set on delivering Labour’s growth ambition 

    June 28, 2025

    Arguably one of the biggest winners from Chancellor Rachel Reeves’ latest spending splurge, the British Business Bank had its lending capacity beefed up and pledged to back the UK’s innovators with its expanded range. The bank had its funding capacity increased to £25.6bn in the Spending Review from near £15.6bn as it targets eight key [...]

  • High street banks’ SME lending comeback won’t rattle challengers

    June 20, 2025

    High street banks are flocking back to small- and medium-sized enterprise (SME) lending but face a battle against fintechs which have captured their spot. The Big Four banks have shed their market stronghold in SME lending. Research from the British Business Bank in March revealed challenger banks make up around 60 per cent of gross [...]

  • Will fintech banks survive falling interest rates?

    June 13, 2025

    Fintech lenders have accelerated their swing to profitability after interest rates spiked. The UK’s neobanks pocketed record revenues in the last 12 months. Revolut’s takings grew 72 per cent topping £3.1bn. Meanwhile Monzo’s revenue hit £1bn for the first time. But this came as interest rates maintained a post-financial crisis high of 5.25 per cent [...]

  • Monzo boss: Our tech will help us beat the big banks

    June 4, 2025

    The boss of Monzo said the fintech darling is ready to take the fight to traditional lenders and “bets every day of the week” on its chances.  Speaking at the Money 20/20 conference in Amsterdam, TS Anil said the next decade of banking would present “a race between two sides of the industry.”  Anil said [...]

  • Starling Bank: The rise and fall of a fintech darling

    May 30, 2025

    Over a decade ago three fintechs entered the banking scene and set their sights on reshaping its landscape. Starling, Monzo and Revolut rapidly expanded as they leveraged modern tech to streamline banking operations, enhance consumer experience and disrupt traditional financial models. The trio of fintech darlings ballooned customer bases in record numbers.  But as two [...]

  • OakNorth: Shareholders to be handed £40m as US expansion boosts profit

    March 6, 2025

    Profit at challenger bank OakNorth has surged thanks to its expansion into the USA, it has been revealed. The London-headquartered digital bank has reported a pre-tax profit of £214.8m for 2024, up from the £187.3m it posted for the previous 12 months. Over the year, OakNorth provided more than £2.1bn in gross new lending to [...]

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