January brought a surge in financial services satisfaction, with scores climbing across products. But to sustain momentum, providers must tackle lingering pain points says Jess Trueman (pictured), Head of Business Development, Smart Money People, as she shares latest data.
The financial services industry has entered 2025 on a high note, with January showing a significant improvement in customer satisfaction metrics. This positive trend marks a shift in customer sentiment, reflecting well on service providers’ efforts to enhance customer experience. However, there are still key areas that need attention to maintain and build on this progress.
At Smart Money People, unlike generic review platforms, we focus solely on UK financial services. Here are our findings from January’s data:
A promising uptick in customer satisfaction
Overall, customer satisfaction in financial services improved in January, with the overall average rating climbing to 4.88 out of 5 — an impressive increase from 4.57 in December. This surge in satisfaction is further reinforced by a notable 15.8-point increase in Net Promoter Score (NPS), which reached +89.4.
Improvements were also seen in customer service and perceived value for money, two key factors in building loyalty and trust. Additionally, the percentage of customers reporting fair treatment increased by 4.1 percentage points to 93.8%, reflecting a growing sense of confidence in financial institutions. However, while these indicators suggest a strong start to the year, challenges remain — particularly in product comprehension, which dropped by 3.5 percentage points to 92.7%.
Unsecured loans lead the pack
Among various financial products, unsecured loans led in customer satisfaction, boasting an outstanding overall rating of 4.96 out of 5 and an NPS of +95.7. loan providers are clearly excelling in meeting customer expectations. This strong performance highlights the importance of transparent lending processes and competitive interest rates in driving positive customer sentiment.
Current and savings accounts also showed strong performance, reinforcing their essential role in banking relationships. Meanwhile, mortgages also showed solid results, achieving a 4.80/5 rating. However, mortgage customers perceive value for money lower at 4.51/5, suggesting an opportunity for lenders to reassess pricing strategies and communication around benefits. This is perhaps less surprising given the recent interest rate rises from historically low levels.
Insurance lags behind in key metrics
While most financial products experienced notable gains, insurance is an exception, struggling to match satisfaction levels seen in other areas. With an average rating of 3.81 out of 5 and an NPS of +35.1, insurance providers have considerable ground to cover. Most concerning is that only 67.9% of insurance customers felt fairly treated — a stark contrast to the 93.8% across financial services as a whole.
This gap suggests a need for greater transparency, better claims handling, and improved customer engagement in the insurance sector. Addressing these pain points will be crucial for insurers aiming to regain customer trust and improve retention.
Key takeaways for financial services providers
The financial services industry is off to an encouraging start in 2025, with rising customer satisfaction across multiple product categories. To maintain this momentum, providers should focus on the following areas:
- Enhancing product understanding: Given the decline in product comprehension, financial institutions should prioritise clear and accessible communication to help customers make informed decisions.
- Optimising perceived value for money: Mortgage and insurance products, in particular, need to reassess pricing and benefits to better with customer expectations.
- Closing the insurance satisfaction gap: Insurers must refine their service offerings and claims processes to boost confidence and satisfaction among policyholders.
By addressing these areas, financial service providers can build on this promising start, ensuring sustainable customer satisfaction and long-term industry growth in 2025 and beyond.
