Many Americans are drawn to the U.K. for unique and compelling reasons, and while only some do, it is simple to see why. The British royal family feels aloof from daily life, the political system is functional, and it's sad to watch British popular culture decline in the age of streaming T.V. data analyst Jonathon Watterson. However, what attracts people the most is the banking system. Read on to learn the numbers of the largest U.K. banks.

Monetary Financial Institution

As described, "Monetary Financial Institution" means "banks and building societies authorized to operate in the United Kingdom." A bank must meet two criteria to be featured on the Bank of England's UK MFI list:

• Operate in the U.K.
• Accept British deposits.

The term "microfinance institution" (MFI) may not apply to UK-based banks that do not accept U.K. deposits. MFIs exclude hedge funds and other specialized companies. Neither do non-bank fintech apps, even if they're linked to U.K. financial institutions and accessible to the best U.K. bank customers. Other than that, the BoE list of MFIs is exhaustive. An MFI will be accepted when opening the largest U.K. bank account.

Number of Banks in the U.K.

There are three hundred and fifty-seven UK MFI banks. The U.K. has 130 of these. In 2021, the U.K. had 67.33 million peopleone MFI per 188,599 Brits. The Federal Deposit Insurance Corporation reported 4,844 US commercial banks in 2023. After population, the U.S. has 2.75 times more banks than the best U.K. banks. Even though U.S. banks have been decreasing for decades, our financial system is more fractured than Britain's.

More Banks in the USA

The U.S. financial system is more fragmented than the U.K.'s because it expanded and populated a wide geographical area throughout the first century-plus of its existence (three centuries if you go back to early Colonial times). Remote rural towns and villages needed banks even after railroads, telegraphs, and the telephone transformed travel and communication.

Farmers, who comprised a majority of the workforce until recently, needed regular capital injections to survive. The rapidly developing, diverse business community propelled American manufacturing and international trade. A complex network of local financial institutions fed into and merged with larger banks in established and rising regional economic centers, including Boston, New York City, St. Louis, Philadelphia, Chicago, Atlanta, and San Francisco.

From the 1970s, this has shrunk through consolidation and a lack of new banks, but it remains dense globally. The best U.K. banks have a smaller land area and a diverse economic history. Though its population grew rapidly during the Industrial Revolution, spawning a wave of new financial institutions in the industrial north, the U.K. only needed a small cohort of tiny banks that are obsolete today. The U.K. has only London to build the largest U.K. banks, but the U.S. has multiple financial centers.

Where Are These Banks Based?

About 30% of MFIs base their headquarters in the U.K., taking advantage of its financial infrastructure. The second largest country-of-origin group, 'Other,' includes non-European countries that the Bank of England doesn't consider 'developed economies' This varied group spans continents and economic phases, demonstrating MFIs' worldwide reach and operational diversity of banks in the United Kingdom.

Countries' participation promotes financial inclusion and economic growth in areas without typical banking services. The U.K.'s solid regulatory environment and access to international markets make it an important MFI hub in global finance. MFIs can better respond to varied economic landscapes and global consumer needs because of their diverse geographic reach. The MFIs group's most prominent nations include:

• Asia
• India
• The Kingdom of Brazil
• China
• Kingdom of Saudi Arabia
• Emirate of Dubai

Best U.K. Banks

Let's examine the possibilities of banks in the United Kingdom. Some of the biggest and most popular U.K. retail banks are:

HSBC

One name on the list of the largest U.K. banks includes HSBC, which has branches nationwide. A benefit of it is that it operates globally. If you bank with HSBC in your native country, they may assist you in opening a U.K. account before you arrive. HSBC offers credit cards, mortgages, insurance, current, savings, and foreign currency accounts. For everyday banking, choose a Basic Bank Account or an advanced account with added features.

Lloyds Bank

Lloyds Bank, another of the largest U.K. banks, was founded in 1765. It offers Classic, Club Lloyds, premium, and professional accounts. The Silver account provides family trip insurance and breakdown coverage, while the Platinum account includes mobile phone insurance. Both accounts charge monthly. Student Accounts and Smart Start savings accounts are available to youth.

Halifax

The Former Yorkshire Building Society Halifax is now part of Lloyds Group of banks in the United Kingdom. Current and financial savings accounts, loans, credit cards, and domestic coverage are available. It has a Basic, Reward, and Ultimate Reward Current account. The latter offers travel, breakdown, home emergency, and mobile phone insurance for a monthly charge. A Student Current Account and Money Smart Account are available for 1115-year-olds.

NatWest

NatWest is one of the best banks in the United Kingdom, and it has a large branch and ATM network. Businesses and individuals can use its private banking and wealth management services. For daily banking, you can choose between current and savings accounts. This comprises the free NatWest Select Account and the monthly-fee NatWest Reward Account, which rewards spending and payments. A Student account and alternatives for kids and teens are available.

Royal Bank of Scotland

RBS is one of the largest U.K. banks based in Edinburgh. It is a NatWest subsidiary that offers identical current accounts. It offers a Foundation Account, RBS Select Account, and RBS Reward Account. Premier, student, teen, and child accounts provide many perks that you can explore.