Why some FS brands connect emotionally—and most don’t

Financial services has a problem. Our Brand Reaction Index 2025 measured pure emotional response to 16 UK financial brands. The sector average? Just +7.

Compare that to groceries (+32), FMCG (+24), or even out-of-town retailers (+20).

But here’s what should worry FS leaders most: there’s a 32-point gap between the best and worst performers IN THE SAME SECTOR.

  • Nationwide: +29
  • Aviva: +13

vs.

  • Barclays: +2
  • HSBC: -3

This isn’t about the sector. It’s about strategy.

The three behavioural barriers holding FS brands back

Our research, rooted in behavioural science, reveals why most financial brands struggle to connect emotionally:

  1. Forced relationships kill affection

People don’t choose to love their banks, insurers and building societies. They need you. This violates the autonomy that drives positive emotional connection.

The behavioural science: When choice feels constrained, humans psychologically distance themselves. It’s a protection mechanism.

  1. Financial anxiety is your brand’s association

Every interaction with a financial brand carries cognitive and emotional weight: → Mortgages = stress → Insurance = worst-case scenarios → Banking = bills and debt → Pensions = existential anxiety

The behavioural science: Loss aversion means humans feel financial pain 2x more intensely than financial gain. Your brand becomes associated with that pain.

  1. Complexity creates cognitive load

Jargon. Fine print. Confusing fees. Unclear T&Cs.

The behavioural science: When things are hard to process, humans avoid them emotionally. Processing fluency = positive affect. Complexity = negative affect.

So why do some FS brands win?

The top performers share two behavioural strategies:

Human-first positioning

Nationwide (+29) literally positions as “A good way to bank.” It’s not subtle, it’s explicit – and it works.

Behavioural insight: In a sector defined by institutional distance, warmth and partnership language creates differentiation. They’ve made “building society” feel like emotional equity, not outdated structure.

Simplicity as strategy.

Monzo (+7) and First Direct (+8) may not top the chart, but they punch above traditional banks through radical simplification.

Clear app interfaces. Plain English. Instant notifications.

Behavioural insight: Reducing cognitive load doesn’t just improve usability, it improves emotional connection. Easy = good feelings.

THE POST OFFICE CASE STUDY: TRUST LOST, TRUST RECOVERED

The Horizon IT scandal crushed Post Office’s BRI score in 2024: -19. In 2025, they’ve recovered to +2—a 21-point improvement.

The clarity this provides:

  • Trust can be rebuilt but it requires understanding the behavioural drivers, not just PR
  • Established brands have emotional equity banks that newer brands don’t

But here’s the strategic question: How much revenue did that -19 cost them? How many customers made decisions based on that emotional disconnect?

For FS brands, trust isn’t a nice-to-have. It’s the growth lever.

THE GENERATIONAL DIVIDE IN FS

Here’s where it gets even more interesting for strategy:

Older consumers (Baby Boomers): → Higher scores for traditional institutions → Nationwide: +50 → First Direct: +10 → Value legacy, stability, proven track record

Younger consumers (Gen Z/Millennials):
→ Higher scores for digital-first → Monzo performs better → Value transparency, control, simplicity

The growth dilemma: You can’t be all things to all generations.

Who are you choosing to win with? And does your brand experience actually deliver on that choice?

In a complex world, financial services brands need to understand what TRULY drives customer decisions—not what they assume drives decisions. Our Brand Reaction Index reveals three uncomfortable truths:

  1. Your sector doesn’t doom you to low emotional connection
    The 32-point spread proves it. Strategy matters more than category.
  2. Trust is behavioural, not transactional
    Post Office’s recovery shows you can rebuild—but you need to understand the human behaviours driving trust restoration.
  3. Your biggest competitor isn’t another bank
    It’s customer indifference. A +7 sector average means most FS brands evoke… nothing.

And in an era where switching is easier than ever, indifference is expensive.

THE QUESTIONS FS LEADERS SHOULD ASK

✓ Do we know how our customers emotionally respond to our brand?

✓ Are we delivering on empowerment?

✓ Does our experience reduce cognitive load or increase it?

✓ Have we chosen which generation to win with, or are we trying to please everyone?

✓ Do we understand the behavioural drivers of trust in our specific customer base?

WANT TO UNDERSTAND YOUR BRAND’S EMOTIONAL CONNECTION?

RED C exists to deliver clarity on the human behaviours that unlock growth. Our Brand Reaction Index combines behavioural science with strategic thinking to help financial services brands:

  • Measure actual emotional response (not claimed preference)
  • Benchmark against competitors
  • Understand generational differences in decision-making
  • Identify the behavioural barriers holding you back
  • Build strategies rooted in evidence, not assumptions

The financial services brands that will win in 2026 and beyond aren’t the ones with the biggest budgets. They’re the ones who understand what truly drives customer decisions—and act on that clarity with confidence.

📊 Download the full Brand Reaction Index 2025

See how 134 UK brands stack up on emotional connection.

📞 Want to discuss your brand’s performance?

Let’s talk about how behavioural science can unlock growth for your financial services brand.

Kirsty Koch & Phil Halliwell
Financial Service Leads, RED C Research

#FinancialServices #BehavioralScience #BrandStrategy #CustomerTrust #FinancialMarketing #GrowthStrategy