More Brits say high street banks have worsened as digital rivals pull ahead
Traditional high street banks and building societies are losing ground to digital challengers on service quality, according to new research.
The findings from CRIF – a global leader in credit and insurance information, analytics and solutions – show that traditional banks and building societies are the only type of financial provider where UK consumers are more likely to say service has worsened than improved over the past three years (29% vs 26%).
Three in ten (29%) consumers say service from traditional banks and building societies has worsened over the last three years, compared with just 7% who say the same of digital banks and fintechs. By contrast, digital providers are far more likely to be seen as improving, with 43% of consumers saying their service has improved.
Change in service quality by financial provider type
Provider type | Improved | Worsened | Net |
Digital banks and fintechs | 43% | 7% | +36 |
Investment and asset management firms | 19% | 8% | +12 |
Credit and lending providers | 21% | 11% | +9 |
Insurers | 17% | 17% | 0 |
Traditional banks and building societies | 26% | 29% | -3 |
Digital banks and fintechs are firmly in positive territory for service improvement, while traditional banks and building societies are the only provider type with a negative net score.
Sara Costantini, regional director for the UK & Ireland at CRIF, said: “Digital banks and fintechs are setting the standard for what good looks like in financial services, and consumers can see the difference.
“What is striking is how traditional banks are falling behind. It’s clear that consumers broadly welcome the rise of digital banking services but remain frustrated when this digitisation leaves them with poorer services that lack human support. As the only provider type that customers think has worsened rather than improved, incumbents can no longer rely on their scale or legacy alone to retain customers.”
Branch closures leave one in five without support
UK consumers have broadly welcomed the rise of digital financial services, with two in five (41%) saying they have made managing their money easier, while almost half (48%) say they are able to manage their finances 24/7.
But a significant minority feel the shift has come at a cost. One in five (20%) say bank branch closures have made it harder to get the support they need, while 16% say the growth of digital services has led to a decrease in service quality and 15% believe digital services have only been introduced to reduce providers’ costs.
Costantini added: “The banks that will win out are those that match the challengers on digital experience without leaving behind the people who relied on in-person services. The opportunity for high street banks is clear: combine trusted brands and longstanding customer relationships with smarter use of data, analytics and digital services. Those that can deliver both convenience and confidence will be best placed to win the next generation of customers.
“In the end, customers do not choose between digital and human banking. They expect both. The winners will be the institutions that use technology not just to make banking faster, but to make it feel more personal, relevant and reassuring.”
The findings come as separate research shows that nearly half of UK consumers (49%) have now opened a digital-only bank account, up from 40% in 2025 and 36% in 2024.
The research forms part of CRIF’s 2026 Banking on Banks report series. The first report, launched in June, looks at the biggest financial pressures currently facing European consumers and businesses. The second report, due to be published later in October, will look at the financial services gap between consumers and businesses.