(4 November 2026 – United Kingdom) British neobanks are targeting the country’s start-ups and newest enterprises in a bid to achieve rapid growth.
United Kingdom (UK) Chancellor of the Exchequer John Healey revealed new measures to increase growth by funding startups and small businesses – the same customer base digital banks including Monzo and Revolut view as a lucrative opportunity, Charlie Wells reports for Bloomberg.
In the 28 October Budget, Chancellor Healey announced a ten percent capital gains rate for founders on up to £10 million of lifetime gains and around £5 billion of extra capital for the British Business Bank. At the same time, he doubled the surcharge on bank profits from three to six percent for 15 months.
The two digital banks are competing for the country’s youngest companies with Monzo surpassing one million business customers in July, or 1 in 6 UK enterprises, and was the most switched-to business account last year.
Revolut concluded 2025 with 767,000 business customers and has already waged a deposit war against high street bank majors following a protracted four year process to attain a full UK banking licence.
“The real neobank battle has moved from your wallet to your business. Revolut and Monzo chasing the UK’s small businesses is a tell: consumer accounts are won and low-margin, but business banking is where the money is, lending, FX, cards, payroll, all stickier and more profitable than a personal current account. And it’s the big four’s softest spot” stated Connecting the Dots in Fintech Founder, Marcel van Oost.
“UK small businesses have complained for years about slow, clunky, expensive incumbent banking, and the neobanks are built to be the opposite. The timing helps too, with the new chancellor pushing measures to support startups.”
“The twist is that Revolut and Monzo aren’t just fighting the incumbents, they’re fighting each other for the same ground. Whoever becomes the default bank for a generation of new businesses wins a relationship that lasts decades.”
“What I find interesting is that the battle is moving beyond the account itself. Revolut has just started lending to consumers, and if business credit follows, the big four could start to feel it where it matters most.”