UK's banking challenge
Sep 30, 2025
BANKING IS BECOMING A COMMODITY AND THAT’S A RISK FOR PEOPLE AS WELL AS BRANDS.
Switching banks has never been easier. Challenger banks make sign-up seamless. To most people, a savings account, mortgage, or credit card now looks the same wherever you go.
That’s why banks are sliding into a race that’s almost impossible to win, competing only on rate. And no one builds loyalty to an APR.
Meanwhile, life for everyday people is harder. The cost of living squeeze hasn’t gone away. Wages are stretched, borrowing feels riskier, and household budgets are fragile. The UK consumer confidence index is still stuck in negative territory, with people saying they feel worse off than a year ago. Trust in financial institutions is low and patience is lower.
This is why experience matters more than ever. When products blur and confidence falls, the only thing left to set a bank apart is how it shows up in people’s lives. Mintel’s 2025 trends show customers want flexibility with modular products, seamless digital services and solutions that support daily life. Interestingly, TrendzOwl found banks with stronger customer experience grow three times faster.
At Big Strategy Box, we see this across other sectors too. When commoditisation becomes the norm, the only way forward is clarity, relevance, and proof. For banks, that means:
Selling the experience, not just the product
Aligning with people’s values
Building tangible trust through transparency, simplicity, and consistency
Proving impact in financial terms
Using AI to ease daily life, but ensuring we keep the human touch where it matters most
The reality is banks won’t lose because they’re too slow. They’ll lose because they many look the same at a time when people are under pressure and desperate for support.
The banks that win will prove their value in everyday lives, and make trust their strongest currency.