UK consumers ready to leave banks over AML failures

By Parth Prabhudesai

ThetaRay has released its UK Banking & Fintech Trust Report 2026, highlighting growing consumer expectations around anti-money laundering (AML) controls, transparency and digital banking experiences.

The report, launched ahead of the Global RegTech Summit, suggests that compliance and financial crime prevention are increasingly influencing customer loyalty and banking decisions in the UK.

According to the study, 88% of UK consumers said they would leave their primary financial institution if it failed to prevent money laundering or terrorist financing activity. Additionally, 87% stated they would actively discourage others from using a bank associated with sanctions breaches or illicit financial activity.

The findings indicate that AML effectiveness has moved beyond a regulatory requirement and is now becoming a competitive factor for banks and fintech firms. Around 81% of respondents said strong AML controls are now a top priority when choosing a financial services provider.

At the same time, customers continue to demand convenience and speed in digital banking experiences. The report found that 70% of respondents said the speed and clarity of onboarding processes directly affect whether they complete or abandon an application.

Security-related friction also remains a major concern. While consumers support fraud prevention and compliance checks, 80% said they would switch providers if repeated security checks caused inconvenience. Meanwhile, 96% said they expect real-time explanations and transparency when transactions are delayed or frozen.

ThetaRay argued that traditional rule-based compliance systems are struggling to balance effective financial crime prevention with modern customer experience expectations.

Brad Levy, Chief Executive Officer of ThetaRay, said compliance is increasingly tied to customer retention and trust.

“Switching banks is no longer a major barrier for consumers, and they expect trust, convenience and strong AML practices from their financial institutions,” Levy said.

Garima Chaudhary, Vice President of Financial Crime & Compliance AI at the company, said legacy compliance systems are becoming ineffective against both sophisticated criminals and evolving consumer expectations.

The report also showed that traditional banks continue to dominate the UK market, with 68% of respondents still primarily relying on high-street banks. However, fintech adoption continues to rise, with 28% of consumers now incorporating fintech platforms into their main banking setup.

The study was conducted by Centiment on behalf of ThetaRay and surveyed 1,023 UK-based respondents across multiple age groups.