Steady sentiment, uneven reputations: UK Bank Sentiment Index Q3
Why UK bank reputation remains fragile despite rising sentiment?
Penta’s UK Bank Sentiment Index, which tracks real-time perceptions of the country’s largest banks, recorded a score of +8 in Q3 2025, down one point from the previous quarter but still above the five-year average.
The results point to a steady quarter overall, but beneath the surface reputational divergence between institutions continued to widen as scrutiny on performance and resilience intensified.
Key factors influencing bank sentiment in Q3
In Q3 2025, sentiment strengthened where policy signals translated into tangible relief, particularly in mortgages and housing. Expectations of rate cuts early in the quarter and signs of easing costs for borrowers lifted perceptions of access to finance. Yet reputational pressure persisted as operational disruptions, compliance issues, and uncertainty around leadership and sustainability continued to erode confidence.
Operational resilience remained a defining factor for bank reputation. Investment in digital capability was viewed positively but offset by recurring technical failures and poor customer experience. As institutions drive efficiency through AI and automation, public concern is shifting to what this means for jobs and access to banking beyond digital channels.
Commercial success, from strong earnings to innovation and M&A, offered only limited uplift to sentiment. Stakeholders are increasingly focused on how banks align profit with purpose. ESG remained a visible but uneven theme, with inconsistent delivery creating ongoing reputational risk.
Wide sentiment divergence highlights gaps across the sector
David Cook, Partner, Financial Services, believes the Q3 analysis shows a sector adjusting to rising expectations from policymakers and the public, saying: Regulatory ambition and public expectation are evolving in parallel, and banks are under pressure to show how this change delivers for consumers. Our sentiment data reveal widening divergence between institutions as expectations around resilience, transparency, and purpose continue to rise. With the UK Budget in November likely to bring further scrutiny of banks in terms of growth and taxation, Q4 will be a critical period. Data-driven insight and clear strategic communication will be essential for institutions seeking to maintain trust and demonstrate value in a changing policy environment.
If you’d like to understand where your institution ranks this quarter or discuss the findings in more detail, get in touch with the Penta team.
UK Bank Sentiment Index over time
Methodology
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.