Digital-only banks and neobank platforms have collectively surpassed 100 million U.S. accounts for the first time, according to a new report from Cornerstone Advisors. The milestone reflects the accelerating shift away from traditional brick-and-mortar banking, particularly among younger consumers who prefer the convenience, lower fees, and higher savings rates offered by digital platforms.
Chime remains the market leader with approximately 22 million accounts, followed by SoFi at 14 million and Cash App's banking services at 12 million. The growth has been fueled by competitive savings rates, with several digital banks offering APYs above 4.5%, as well as features like early direct deposit, fee-free overdraft protection, and automated savings tools that resonate with a generation accustomed to frictionless digital experiences.
Traditional banks have responded by accelerating their own digital transformations, but the pace of branch closures suggests that the shift is structural rather than cyclical. Over 2,400 bank branches closed in 2025, bringing the national total below 70,000 for the first time. Banking regulators have expressed concern about financial inclusion implications, noting that digital-only services can be inaccessible to elderly consumers, those without reliable internet access, and individuals who lack the identification documents required for online account opening.
