Nearly half of UK consumers say personalised cashback rewards would make them more likely to remain with their bank, according to new research from Cardlytics, a purchase intelligence and marketing platform.
The findings, drawn from a nationally representative survey of 4,000 UK adults published in the Cardlytics Banking Index, show that 47% of consumers would be more inclined to stay with their bank if offered personalised cashback tied to their actual spending behaviour, with 20% saying they would be much more likely to remain. Among 18 to 34-year-olds, that figure climbs to 55%.
Despite 65% of respondents describing themselves as loyal to their main bank, more than half (57%) have switched their primary current account at some point in their adult lives, suggesting that expressed loyalty does not always translate into long-term retention. A further 60% said they are unlikely to switch in the next 12 months, though this falls significantly among younger demographics, with 25% of Gen Z and 24% of Millennials said they are considering a switch within the year.
When asked what motivates switching, consumers pointed to better savings or interest rates (36%), improved cashback or rewards (28%), and financial incentives to move (27%). Meanwhile, those who have never switched cited inertia as the primary barrier: 28% saw no strong reason to change, 24% noted their finances were already established with their current provider, and 20% said the process felt too burdensome.
Customer service (40%), brand trust and reputation (35%), and the quality of mobile or online banking (32%) were cited as the main reasons consumers remain with their existing bank. Among Baby Boomers, customer service was particularly decisive, with 50% naming it as a key retention factor.
The research also found that exclusive loyalty is no longer the norm. While 44% of consumers hold only one current account, many spread their finances across multiple providers, with 17% to separate spending, 14% to avoid over-reliance on a single bank, and 13% to manage joint and personal finances independently.
When it comes to everyday spending priorities such as groceries, fuel, and household bills, keeping costs low was the top concern for 39% of respondents, followed by convenience (22%) and accessing rewards or cashback (13%).
Cardlytics SVP, UK Partnerships Lucy Whittemore said, “While most customers are not actively planning to switch, many are open to change when the value is clear. Banks cannot rely on inertia to protect retention.
“Trust and service are now the baseline, and in order to stay competitive, banks need to make their value visible in everyday moments. Personalised rewards are a practical way to reinforce relevance and strengthen retention in a market where customers are ready to move.”
Copyright © 2026 FinTech Global
