ThetaRay has published its UK Banking & FinTech Trust Report 2026, revealing that the overwhelming majority of British consumers are prepared to leave their primary bank if it fails to prevent money laundering or terrorist financing.
The report, released ahead of the Global RegTech Summit, found that 88% of UK customers would change their financial provider following such failures, while 87% said they would actively warn others against using a bank connected to money laundering or sanctions breaches. A further 81% now regard anti-money laundering (AML) effectiveness as a leading consideration when choosing a new provider.
Friction emerging from security processes is also a significant churn driver. The data shows that 96% of respondents expect real-time transparency when transactions are frozen, and 80% would move to a rival provider as a result of repeated disruption caused by security checks. In the area of digital onboarding, 70% said the speed and clarity of the process directly determines whether they complete or abandon an application.
Despite rapid digital adoption, 68% of UK consumers continue to rely on high-street banks as their primary provider, though 28% have incorporated FinTech solutions into their core banking arrangements.
ThetaRay develops AI-native infrastructure for financial crime compliance, working with banks and FinTech firms to identify suspicious activity and meet regulatory obligations at scale.
The report was carried out by research firm Centiment on ThetaRay’s behalf, surveying 1,023 UK-based respondents drawn from a sample representative of the broader UK population across a range of age groups. While 88% of UK customers currently report trusting their bank — a sector that has ranked as the most trusted subsector within finance since 2023 — the report characterises that trust as conditional and increasingly vulnerable to compliance and experience failures.
ThetaRay CEO Brad Levy said, “Compliance has moved from back office to front-line engine for customer retention. Switching banks is no longer a major barrier for consumers, and they expect trust, convenience and strong AML practices from their financial institutions.”
ThetaRay VP financial crime & compliance AI Garima Chaudhary said, “The data proves that legacy, rule-based systems are creating a double-edged risk: they are both too wide a net for modern criminals and too rigid for the modern consumer. For leaders, AI native infrastructure is now the only way to protect brand equity and prevent mass deposit flight.”
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