Business secretary Vince Cable suggested those working in branches across the nation are more preoccupied with receiving large bonuses for selling products than they are with assisting consumers.
Mr Cable described the problem as a cultural issue and suggested the personal incentive to push products is going against the traditional relationship between a bank and its customers.
He noted lenders are also becoming detached from local relationship banking - an aspect many people hope to see return.
"Competition is the best antidote to the rip-off culture which is ingrained in the banks ... extracting excess profits from customers," Mr Cable added.
The politician - who is also the Liberal Democrat MP for Twickenham - went on to point out that UK banks should not view those in France and Germany as role models, as institutions in these countries have attempted to hide their own financial problems.
By Asim Shah