High street banks lose £100bn in deposits as UK savers shift to online rivals

KPMG says higher savings rates are fuelling move to challenger banks, specialist lenders and building societies

High street banks across the UK have lost the equivalent of 100bn in savings as more customers turned from traditional lenders towards online banks and building societies, figures show.

Experts at KPMG said rival banks - including new challenger banks, specialist lenders and building societies - had lured customers away from incumbent banking groups with higher savings rates. The traditional banks' market share in deposits dropped from 84% in 2019 to 80% in 2024, it added.