How will the challenger banks fare as the cost-of-living crisis bites?
The neobank sector has enjoyed explosive growth in recent years, but the return of high inflation to the UK represents a significant barrier to its progress
Challenger banks surged into the mainstream in the UK during the late 2010s by offering consumers more innovative services and, often, better savings rates than the high-street giants were prepared to give.
But they have had a tougher time since 2020, first as the Covid recession constricted their revenue streams and now as the Bank of England keeps increasing its base rate to control inflation, putting a brake on the economy in the process.
