Why open a Challenger Bank account in 2021

Why open a Challenger Bank account in 2021

Guest Post – why you should consider opening a challenger bank account for yourself in 2020-2021.

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.

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).

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

So, what are the reasons why you should own a challenger bank account?

Reasons for taking out a Challenger Bank Account

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.


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.


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!


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. 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.

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.

Continuous Growth

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.

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.

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