Why open a Challenger Bank account in 2021

Uncovered – Great Reasons to Open a Challenger Bank Account in 2023

Why open a Challenger Bank account in 2023

In this Guest Post – we explore why you should consider opening a challenger bank account for yourself in 2023

So basically, opposition has found its way into virtually every sector of human life. From nature, such as in the endless battle between light against darkness, now to finance, as we’re now experiencing in the emergence of Challenger Banks against the big four British Banks, one really needs to know what’s going on.  

In fact, that’s why when it comes to our personal finances, most people tend to ask a lot of questions before making a big move such as opening a new account. That’s why today, I’ll be making one of those big moves.

But before I do that, I’ll lay down some concrete reasons for why opening a Challenger Bank account is very important, and why it could change your life for the better.

But before we get into that, let’s first look at exactly what Challenger Banks are.

Why open a Challenger Bank account? – What are Challenger Banks?

Basically, a challenger bank refers to any bank that’s out to challenge the big four banks in the UK. These four include – Barclays, Lloyds Banking Group (which includes Halifax, Lloyds Bank and Bank of Scotland), HSBC and RBS (which includes NatWest and Ulster Bank).

Canary Wharf Skyline
In the UK – the big high street banking names are the incumbents, the likes of HSBC, Barclays, Lloyds and RBS. These four, and many others – now face stiff competition from new banking startups, a wave of banks known as ‘Challenger Banks’.

To put it another way, online and digital-first banks such as ‘Starling’ and ‘Monzo’, are what we now call challenger banks.

For a more detailed explainer, we’ve also prepared this guide which gives some insight into the differences between a Challenger Bank, a Neo Bank, and a Traditional Bank.

So, what are the reasons why you should own a Challenger Bank account?

Why open a Challenger Bank account? – Top Reasons

Why open a Challenger Bank account? – For Better Customer Support

Undoubtedly, this is one of the areas where challenger banks are beating the traditional banks hands down.

We all know that to get attended to in a traditional bank, you have to wait in a lengthy queue and wait our turn.

Well, that’s something you’ll never have to experience with a challenger bank because their support teams are always on standby to deliver. You get attended to, as soon as you need.

It’s online, so there simply is no need to stand in a physical queue in a high street branch.

Why open a Challenger Bank account? – For Convenience

Challenger banks offer a superior level of convenience with regards to how their apps and website perform.

With these banks, sending and receiving money, alongside carrying out other banking activities, couldn’t be any easier and more convenient thanks to their best-in-class UX and modern design interface.

Paying with Chip and PIN
All of the Challenger Banks offer the same Chip & PIN and contactless payment cards which we have come to rely upon. They also offer mobile banking apps with contactless payment and a range of great new features which often aren’t available from the traditional banks.

Why open a Challenger Bank account? – Registration

I bet I’m not the only one who hates the long and arduous process that often presents itself when trying to open a bank account in a traditional bank.

In a challenger bank however, the registration process is often as quick and easy as setting up a new account on TikTok or Twitter. As simple as that!

Why open a Challenger Bank account? – Paying for Utilities

With a traditional banking system, you often have to go into the high street branch to use some of their services such as check up on the status of an invoice or cheque. But with challenger banks, all of those things are available to you at your fingertips, whenever you want to make use of them.

Illustration of Bills
Many Challenger banking apps come with great in-built tools and analytics to help you understand and better manage your bills and monthly outgoings.

The ease of access to this information can quickly help you spot any anomalies in your account, like fraud or overspend, even on weekends when traditional high street banks might be closed.

Why open a Challenger Bank account? – Interest Rates

Given that challenger banks in the UK are striving to beat the top 4 banks, they often offer preferential interest rates and lower fees on loans and account charges.

So, if you’re looking for somewhere to get a new loan at a very good interest rate, with low charges on your transactions, then challenger banks could be a great option. Nevertheless, terms and conditions apply and you should always shop around to find the best deal and terms for you.

Counting 20 Dollar Bills
The financial rewards, interest rates, low transfer fees and exchange rates can all be better with Challenger Banks.

Why open a Challenger Bank account? – Continuous Growth & Product Innovation

The best thing about challenger banks is that they are continuously improving and striving to beat the top 4 British banks. This means that if you join them now – you’re sure of enjoying more benefits that will come along as the years go by and they invest and develop their product further.

Challenger Banks also continue to add great new product features, including the ability to invest, buy and sell shares, and even purchase Bitcoin and other Cryptocurrencies.

Why open a Challenger Bank account? – In Summary

In a nutshell, challenger banks are faster and more convenient to use when compared to the traditional banking experience.

Plus, if you’re looking to not only have a seamless banking experience, but one which comes with low charges and interest rates – then you need to think about getting yourself a challenger bank account.

Revolut Card in Black
Challenger banks are shaking up the consumer banking market with better services and new products. 5-10 years ago you wouldn’t have seen any innovation even in the style of your payments card – now we have the likes of the Revolut Metal card, and the new Apple Card which accompanies the Apple Pay app.