UK banks face reputational challenges amidst concerns around conduct and fraud
A new study by media and market intelligence provider, CARMA, has revealed that nearly half (46%) of all negative media coverage of UK banks in 2024 focused on concerns over conduct. The report, The Reputation Economy: Media and Consumer Insights from Top UK Financial Institutions, highlights mounting issues related to transparency, compliance, and ethical standards, which have pervaded the media narrative.
Covering ten major UK banks – including NatWest, Standard Chartered, Barclays, Santander, among others – the research examines how these institutions are positioned in the UK media, focusing on sentiment and key reputational themes, including customer service, financial stability, corporate culture, and sustainability. The analysis is combined with CARMA’s own audience research study to explore the influence of the media portrayal of banks’ strategies on consumer preferences and brand perception.
Conduct has emerged as a major reputational challenge, with 76% of conduct-related media coverage carrying a negative tone – significantly higher than the 29% negativity seen in overall banking coverage.
In the consumer research, 90% of respondents said a bank’s conduct directly impacts their perception of the institution, ranking it as the second most important reputational pillar after products and services (91%) influencing public perception.
Barclays received the highest level of conduct-related media coverage, accounting for 34% of all mentions in this category, followed by NatWest (19%), HSBC (18%), and Lloyds Bank (16%). Nationwide, Santander, Standard Chartered, Virgin Money, Metro Bank, and Royal Bank of Scotland also featured in conduct-related discussions, though at lower levels.
Security and fraud prevention are critical concerns, with 57% of fraud-related reporting questioning banks’ ability to protect customers from scams and cyber threats. Consumer trust in fraud protection measures is directly linked to retention, with 56% of consumers stating that inadequate fraud protection would influence their decision to remain with or leave their bank. While Barclays saw a lower proportion of positive coverage (22%), its dominance in security and fraud prevention reporting helped it secure the top spot in the most preferred banks benchmark.
Despite reputational challenges, banks that actively engaged in fraud awareness campaigns and customer education saw improved media sentiment in 2024.
However, some banks came under scrutiny for their sustainability practices, with activist campaigns targeting Lloyds Bank and Barclays, alongside concerns about greenwashing. Despite these challenges, sustainability-related media coverage remained more positive than general banking coverage, with 39% of reports in this category carrying a more favourable tone, compared to 31% generally.
The report also found a strong link between proactive sustainability initiatives and media sentiment: 73% of consumers consider sustainability to be a key factor in their choice of bank, ranking as the fifth most important reputational pillar. Transparent communication around these efforts has become crucial in building trust and enhancing brand reputation.
Notably, sustainability initiatives played a significant role in shaping positive perceptions. Banks that supported homeowners with energy-efficient upgrades or purchases saw particularly strong recognition. HSBC, Nationwide, and Barclays stood out for their role in facilitating financial planning, positioning them as key allies for consumers navigating high energy costs amid the ongoing cost-of-living crisis.
Jennifer Sanchis, insights consultant at CARMA, said: “Issues tied to banks’ behaviour, such as authenticity, transparency, compliance, and ethical standards, carry significant weight in both media coverage and public perception. Conduct is the second most important factor for consumers when it comes to choosing, staying with, or leaving a bank. Yet despite this, conduct was a major driver of negative reporting, with 46% of all negatively toned articles last year referencing concerns in this area.
“This suggests to us that while consumers place a great deal of importance on banks’ conduct, the media narrative is overwhelmingly negative. Even in more balanced reporting, negative references to conduct far outweighed positive ones, highlighting the need for banks to take a proactive approach in addressing these concerns. By better understanding what consumers prioritise and care about, banks can shift the conversation and build trust.
“At the same time, it’s interesting to see the impact of sustainability on brand perception. With 73% of consumers citing sustainability as a key factor when choosing or leaving a bank, institutions that clearly communicate their efforts and achievements are seeing reputational benefits. Here, banks have an opportunity to shape their own narratives by reinforcing commitments to ethical banking, fraud prevention, and sustainability, all through transparent and consumer-focused communications, ensuring their messaging aligns with what matters most – their customers.”