More than a third of customers don’t feel valued by their bank, Which? warns
Over a third (35%) of bank customers do not feel valued by their bank, as branches and services continue to disappear at a rapid pace, according to Which? research.
The consumer champion’s survey in May of 13,660 members of its Connect Panel found many people had noticed that services were being removed in the past two years.
The most common issues raised included the loss of paper statements (18%); automatic cheque book replacement (15%); face-to-face appointments (14%); coin-counting machines in branch (8%); ATMs that accept cheques (7%); and SMS balance alerts (4%).
Nearly a third (30%) of respondents were dissatisfied with branch banking, while just over a fifth (22%) of respondents said they were satisfied. One in 10 (9%) were dissatisfied with telephone banking, and one in five (21%) said they were satisfied with it.
As more banks offer increasingly digital services, three-fifths (59%) of respondents were satisfied with their bank’s mobile banking services, compared with just 5 per cent of respondents saying they were dissatisfied. Three quarters (73%) of respondents were satisfied with their bank’s online service, while only 6 per cent of respondents were dissatisfied.
However, Which? is concerned that a two-tier system of satisfaction is emerging, with customers not willing or able to make the switch to digital banking potentially being left behind. Despite most consumers banking digitally, the Financial Conduct Authority’s latest Financial Lives Survey found that 9.7 million day-to-day account holders visited a branch each month. Vulnerable consumers are among those most reliant on cash.
New rules to protect free access to cash, campaigned for by Which?, should mean that banks carry out assessments of a local community’s cash needs before a branch is closed. One alternative service to shuttered branches is banking hubs, which are premises shared by a handful of banks and can offer a range of services. However, services at these hubs vary, meaning customers that need to, say, register power of attorney or grant of probate, open a new account, or pay certain bills, may still need to travel large distances to access this.
Which? believes that the current rollout of banking hubs is too slow for enough consumers to feel their benefits.
The government has pledged to open 350 hubs by 2029 and it is crucial that ministers hold the industry’s feet to the fire to ensure this target is met, revising the figure upwards if necessary.
For customers not to get caught out, the consumer champion believes these banking hubs should offer a wider range of in-person banking services.
Sam Richardson, Deputy Editor of Which? Money, said:
“While many consumers choose to bank digitally, there remains a significant minority of people who aren’t willing or able to make that switch - and for these customers, their banks are letting them down.
“It is clear that as bank branches continue to close at rapid rates, alternatives such as banking hubs will likely be the future of banking. However there remain too few of these for enough customers to feel their benefit, and Which? wants the range of services expanded to ensure they are available across the country.
“The government must hold industry’s feet to the fire to ensure the proposal to open 350 hubs by 2029 is on track, revising the figure upwards if necessary, while ensuring these hubs offer a consistent level of services.”
ENDS
Notes to Editors
Methodology
Which? surveyed 13,660 members of its online panel between 15th to 21st May 2025.
About Which?
Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen.
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