Majority of Customers Contemplate Bank Switch Due to Financial Misconduct Allegations, According to ThetaRay Study
In the U.S. banking and fintech sector, consumer attitudes towards anti-money laundering (AML) practices are a major concern. According to ThetaRay's U.S. Banking & Fintech Trust Report 2025, an overwhelming 84% of consumers would switch banks if the institution was linked to financial crime, and 87% would actively warn friends and family against using that provider [1].
Despite this, 93% of respondents currently have positive or neutral sentiments toward their financial providers, indicating strong but fragile trust that could be easily broken by AML failures. However, nearly three in four consumers also said they might consider switching banks if AML controls caused significant disruptions to their experience, such as payment delays or intrusive checks [1].
This highlights the need for a balance between compliance and customer experience. Artificial intelligence (AI) plays a crucial role in achieving this balance. AI and machine learning technologies are revolutionising how institutions monitor transactions, verify identities, and score risk in real time [3][5]. These capabilities allow for more accurate detection of money laundering activities like layering, smurfing, and use of shell companies, while minimising false positives that could inconvenience customers.
AI enables real-time sanctions screening, enhanced risk frameworks, and the automation of complex compliance tasks, which collectively help financial institutions improve detection rates (important given that 90% of illicit transactions still evade detection worldwide) without excessive manual delays or intrusive checks on customers [3][5].
The ThetaRay report emphasises that the strength of financial crime defenses is part of a financial institution's brand. The CEO of ThetaRay, Peter Reynolds, states that financial institutions need to prioritise both customer experience and compliance [2]. Strengthening compliance without compromising experience is crucial for earning customer trust, enabling faster transactions, and ensuring confident growth.
The report provides insights into how leading institutions are using AI to strengthen compliance. It also underscores the urgent need for smarter, more adaptive financial crime defenses in an increasingly high-stakes environment. Legacy AML systems generate false positives at rates as high as 90-95%, highlighting the need for a new generation of AI-powered solutions to reduce false positives and improve detection without compromising customer experience [3][5].
Download the full ThetaRay U.S. Banking & Fintech Trust Report 2025 here for more detailed insights into consumer attitudes towards AML practices and the role of AI in strengthening compliance.
