74% of consumers read reviews before switching financial providers – here’s how to retain them

The warning signs are often visible long before a customer formally complains or leaves. Yet many providers only notice customer churn once it’s already happening, missing opportunities to address issues that could have been resolved earlier.

Our same research revealed that 42% of people experienced frustrations with a financial product or bank in the past year, rising to 69% among Gen Z. Poor service, confusing terms or high fees can quickly convince customers to move elsewhere.

But here’s the thing. Most people don’t tell you directly, only 12% of consumers always complain to their provider. That means unless you’re actively tracking and responding to reviews (where these concerns will undoubtedly first appear), you’re letting your customers leave without even knowing why.

Reviews help you retain customers

Reviews are vital because they reveal hidden issues early. They give you visibility of problems that complaint data might never capture. For example, our research told us that 20% of Gen Z think terms and conditions are too complicated. This crucial, but more generic type of feedback probably wouldn’t get picked up in formal complaints.

Reviews also provide an opportunity to respond before the relationship is lost. Our research shows that when financial providers reply to reviews, 39% of customers feel heard and valued, and nearly a third become more likely to continue doing business. This means a review isn’t just a public mark on your reputation, it’s a chance to build an ongoing relationship.

Perhaps most importantly, reviews can turn negatives into positives. A bad experience doesn’t have to mean a lost customer. A quarter of Gen Z said their issue was resolved after leaving a review, and more than one in ten even received compensation. Here, a potentially lost customer turned into a trust building opportunity because the business responded in the right way.

Why ignoring reviews costs you customers

The reality is simple. Customers use reviews to decide whether to stay or switch. Almost three-quarters of consumers read reviews before moving to a new financial provider, and six in ten admit they’ve changed their mind after reading them. Expectations are high, too. The average minimum rating people are willing to consider financial products is 4.1 out of 5, higher than most other sectors.

If you’re not engaging with reviews, you aren’t just losing customers quietly, you’re handing future customers to competitors. Every review left unaddressed is a missed chance to prove your commitment to meeting your customers’ needs, and preventing losing them.

Specialist reviews for actionable insight

Generalist review sites may flag general issues, but they rarely explain why customers are leaving. That’s why you need to work with a specialist. Unlike generic review sites, we focus solely on financial services. With more than 2.5 million reviews across ten years, and 16+ data points collected with every review, we give providers the depth of insight needed to benchmark against competitors, identify red flags early, and even evidence Consumer Duty outcomes.

Final thoughts

Customer loss doesn’t happen overnight. It builds through silence and disengagement. Reviews put the spotlight firmly on this, giving providers the chance to act before it’s too late.

And remember, with 74% of consumers already reading reviews before deciding to switch, listening and acting on what they’re saying has never been more crucial.

To discover how our data and insights can help you to retain your customers, contact our Business Development Team.

*Smart Money People research, April 2025