Only one in five people in the UK leave a review after a bad experience with a financial services provider, new research has revealed – despite the potential benefits of doing so.
The study, conducted by Opinium on behalf of review platform Smart Money People, surveyed 2,000 UK consumers in April. It found that just 20% of individuals take the time to share negative feedback publicly when things go wrong with banks, insurers, credit card companies or other financial services firms.
Interestingly, the report highlights that for those who do leave reviews following a poor experience, more than half (52%) said it led to a better outcome. In some cases, customers had their issues resolved (16%), received a direct apology (15%), or were even offered compensation (7%).
Jacqueline Dewey, chief executive of Smart Money People, said: “Feedback can be a powerful force for change in financial services, yet too many people continue to suffer in silence. Consumers shouldn’t underestimate the impact their voice can have, both in getting personal redress and in prompting businesses to improve.”
While negative reviews remain underused, the report shows that UK consumers are far more inclined to share positive experiences. A strong majority – 62% – of reviewers have left glowing feedback and gone on to recommend their provider to friends and family.
However, for many consumers, the frustrations of poor service still run deep. In the past year alone, 42% of people said they had experienced a stressful situation with a financial services provider. Of those, 15% admitted needing to go for a walk or a run afterwards just to calm down, while a third (32%) said they had vented their frustration to friends or family members.
Despite not always writing reviews themselves, most consumers do read them – and take them seriously. A significant 74% of people said they consult online reviews before choosing or switching financial products, such as a new current account, loan, or credit card.
When it comes to switching providers, nearly a third (31%) of respondents stated they would only consider moving to a firm that had an average rating of four stars or more. One in seven (14%) said they’d only switch to a provider with a full five-star rating.
On average, customers expect a provider to have at least a 4.25 out of 5 overall score before they would even consider making the switch. For savings accounts, the expectations are even higher, rising to 4.5 stars.
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The findings underline the growing influence of online ratings in the financial sector – a space historically known for complex products and often opaque service standards. Today’s customers are increasingly turning to peer reviews for transparency and reassurance before making financial decisions.
Dewey added: “Financial services providers cannot afford to overlook the power of customer reviews. People trust the experiences of others, and companies that deliver consistently good service – and are seen to listen and respond to criticism – are the ones that will thrive.”
The report ultimately reveals a missed opportunity for both consumers and companies. While leaving feedback may not be top of mind for everyone, those who do so not only help others make informed decisions but can also receive more satisfying outcomes for themselves.
In a sector where trust is paramount, feedback – whether positive or negative – is becoming an increasingly important part of the consumer journey.
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