Introducing the UK Bank Sentiment Index

Penta is excited to launch the UK Bank Sentiment Index. It’s a new tool that tracks how sentiment towards, and the reputation of, the UK’s 20 largest banks is shifting over time. The index is benchmarked to a long-term average of zero, meaning:

• Positive scores reflect above-average sentiment; and
• Negative scores suggest below-average sentiment and potential reputational pressure.

Sentiment towards banks has swung widely over the years - from being seen as ‘masters of the universe’ to hitting rock bottom in the aftermath of the 2008 global financial crisis. Sentiment really matters as bank business models rely on confidence. The regulatory reforms that followed the 2008 crisis were, in many ways, an attempt to restore confidence in Europe’s financial system and regulatory regime and the sector has faced increased public scrutiny ever since that moment. This fascinating dataset tells a story that helps us understand public confidence in banks, what’s moving it, and where risks are emerging.

Why Bank Sentiment matters

As already noted, banks are fundamentally built on confidence. At their core, they operate by holding liabilities (such as customer deposits) that can be withdrawn at short notice, while their assets (such as loans) are typically long-term and cannot be liquidated quickly. This structural mismatch makes banks especially vulnerable to shifts in sentiment and the loss of public trust. Without confidence, even the most apparently well-run institutions can unravel with alarming speed.

Recently, we saw this vividly with the collapse of Silicon Valley Bank. It was a dramatic example of how reputational panic, fuelled in real-time by social media, can trigger spectacular bank failures. This risk is made doubly dangerous by the fact that depositors no longer need to go and visit a bank to take their money out - as happened during the Northern Rock crisis. Now, deposits can vanish with one tap on a smartphone.

As banks become increasingly digital and money moves faster, so regulators are paying growing attention to reputational risk and how rapidly deteriorating sentiment can turn into systemic instability and consumer detriment. Furthermore, in a more complex world of shifting attitudes on topics like ESG (especially greenwashing and greenhushing), trade and defence, risks are more numerous and complicated.  This makes it critical for banks to understand and manage their reputational risks.

What we are doing at Penta

At Penta, we’ve developed powerful tools to track and analyse how sentiment around banks is formed through media (traditional and social), online discourse, regulatory action and expert commentary. The UK Bank Sentiment Index brings that capability to life, offering a consistent, real-time view of sentiment across the 20 largest UK banks anchored to a neutral baseline of zero.

Below is a chart showing sentiment over the past five years, from which the long-term average is drawn.

As can be seen, there have been some significant swings over this period. Prior to 2023, the lows reflect issues arising from regulatory failures, particularly due to fines issued for AML and poor customer treatment. That said, the actions by banks during Covid in the UK were generally perceived as positive, with sentiment towards banks relatively strong during this time. Many also made high profile commitments around net zero, which helped strengthen reputations further.

In the second half of the period, however, we see a more mixed picture. Ethical banking and climate funding started influencing sentiment more meaningfully and some banks’ investment in improving the customer experience (including, for example through more reliable and user-friendly apps) also strengthened reputations. 

However, specific issues had a major impact, including account suspensions, fraud and some activism from shareholders and consumers. During this time, banks invested heavily in customer experience, resilience, and their ESG strategies, yet the data suggests they are not doing enough to communicate their commitments and progress effectively.

Navigating Reputational Risks

At the end of the most recent quarter (Q2 2025), the UK Bank Sentiment Index stood at 9. Although not a particularly strong score, it is above the long-term average, in large part driven by particularly positive sentiment in May around positive results and product developments as well as the announcement of one firm returning profits to its members. However, it is not far above the long-term average and we have already seen a number of damaging stories emerge around financial controls that are likely to push this figure down in the next quarter. An index score of 9, therefore, should not be seen as a particularly comfortable figure for those working in or with UK banks.

If you’re curious about how a particular bank is performing - or would like more detail on what’s driving changes in sentiment across the sector - we’d be delighted to show you more and help you anticipate and address emerging reputational risks before they become bigger problems.