Monzo, the UK fintech darling, has reported that it lost one current account switcher for every two it gained in 2025. According to data from Pay.UK, the digital bank registered just over 20,000 new switchers in the final quarter of the year, but more than half of this was offset by 11,000 outflows.
Full-Year Performance
For the entire year, Monzo attracted a total of 70,620 new current account switchers but simultaneously lost half that number, resulting in a net gain of 36,104. While this represents one of the strongest performances across the industry, it highlights that even tech-savvy neobanks are facing challenges in retaining customers.
Tech Outages and Customer Loyalty
Monzo suffered a tech outage at the beginning of 2025 that left some users unable to view funds or make payments. Historically, such outages have often correlated with a flurry of customers switching providers. For instance, Barclays and Santander saw significant customer exoduses after similar issues.
The coral pink lender's experience shows that fintechs can also fall victim to the same problems they have used to critique traditional banks. Starling, another peer, fared even worse, recording a net loss of 8,433 switchers for the year, with outflows exceeding inflows in every quarter of 2025.
Challenger Banks Under Pressure
The debut of Monzo and Starling over a decade ago, along with Revolut, shook up the traditional banking landscape. However, the latest figures suggest that these challengers are now under pressure to retain the customers they once poached. Revolut is not yet included in the current account switching service rankings but is expected to join after securing its full UK banking licence in March, paving the way for its formal UK bank launch.
Nationwide Stands Out
The standout performer in the switching data was not a traditional lender or a fintech but Nationwide Building Society. It reigned supreme in the final quarter, achieving a net gain of 64,257 switchers—its highest for the year. Over the past year, Nationwide has introduced several sweetener offers, including a £175 incentive for new joiners. The mutual also distributed £2.8bn to members through its 'Big Nationwide Thank You' campaign following its acquisition of Virgin Money, which stirred controversy among some members.
Despite a £44m fine in December for failing to flag Covid fraud between October 2016 and July 2021, Nationwide's performance suggests switchers were able to overlook the penalty.
