UK financial services round-up: trends and insights 2025

In 2025, the UK financial services landscape has been shaped by economic pressures, digital transformation, and changing consumer demands. From the role of AI to trust in banks and the challenges facing vulnerable customers, YouGov research reveals how people in Britain are responding to financial brands and services in an uncertain market.

Economic confidence and consumer sentiment

In June, the YouGov/Cebr Consumer Confidence Index recorded a slight dip, driven by concerns around household finances and business activity. This comes after confidence had already taken a larger hit earlier in the year — the biggest drop in retrospective business activity measures since the start of the pandemic.

As uncertainty continues, many consumers are cautious about investing. More than a third of Britons (36%) say tariffs announced by the US government make them less likely to invest in stocks and shares. 

Trust in banks and customer experience

Two years after Consumer Duty was introduced, 51% of Britons say banks have become better at protecting customers from potential harm in 2025, compared to 40% in 2023. When it comes to good customer service, the figure has risen only slightly from 60% to 63%.

This matters especially for vulnerable groups. Our research reinforces the importance of safeguarding potentially vulnerable customers by ensuring financial service providers meet their regulatory obligations and maintain consumer trust. Data shows that 6 in 10 GB adults display at least one trait that makes them potentially vulnerable under FCA criteria, such as financial strain, health issues, or poor digital access.

When it comes to day-to-day satisfaction, YouGov’s UK bank rankings 2025 show that while traditional banks still dominate, digital-first neobanks are gaining ground.

Download the full UK consumer bank rankings 2025 report here

Generational expectations and BNPL usage

Younger consumers are reshaping financial service expectations. According to YouGov Profiles data, Gen Z prioritise mobile-first experiences, ethical practices, and transparency when choosing banks.

At the same time, Buy Now, Pay Later (BNPL) usage remains high. About a third of Britons say they’ve used BNPL at some point. Among frequent users, 68% are women and 51% are Millennials. Many report financial strain, with some using BNPL to cover essentials.

AI, automation and digital risk

AI adoption is accelerating, but consumers remain cautious. Half of Britons (50%) say they’ve noticed an increase in the use of AI by financial providers over the past year. But that increase in visibility hasn’t come with increased comfort — particularly when it comes to receiving financial advice.

Businesses appear more open to the technology. Around 31% of SMEs are using AI-powered tools, with another 15% planning to do so. The most enthusiastic adopters? IT and telecoms (56%) and media, marketing, and advertising (53%).

As digital adoption grows, cybersecurity remains a key concern. YouGov’s phishing report 2025 finds that half (51%) of UK adults say they are concerned about falling victim to a financial phishing scam.

Download YouGov's Phishing fears in the Al era report to know more

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