Industry Thoughts

The FCA has launched two significant initiatives that signal its evolving approach to financial services: the Mills Review on artificial intelligence (AI) and an exploratory review into how firms monitor consumer outcomes under the Consumer Duty. Together, they highlight an increasing supervisory focus on how technology, governance and customer outcomes intersect.

The UK credit landscape is entering a period of significant change. As we move through 2026, economic pressure, regulatory reform and shifting consumer behaviour are reshaping how lenders assess risk, opportunity and affordability. The message is clear: deeper visibility and smarter use of data are no longer optional.

The FCA and Financial Ombudsman Service’s latest consultation on modernising the redress system is more than a technical policy exercise. It signals how complaint handling and redress expectations are likely to evolve across financial services – with a clear direction of travel towards earlier intervention, stronger discipline in evidencing, and more predictable end-to-end handling.

Manufacturer recalls are a familiar feature of the motor traders. For consumers and lenders, there is a difficult question is whether the existence of a recall means the vehicle was of unsatisfactory quality in breach of a term implied by the Consumer Rights Act 2015 (the CRA) at the time of delivery. The short answer is it will depend on …

Once built around showrooms and paperwork, the motor finance sector has evolved into a digital-first journey shaped by evolving customer expectations, regulatory scrutiny, and rapid technological change. Compliance, technology, and customer experience are no longer separate conversations in today’s landscape, and lenders, brokers, and dealers need to continually adapt their strategies to keep pace to deliver better outcomes.

BNPL regulation has been talked about for years. PS26/1 now sets out the rules and expectations clearly. For firms operating in this market, preparation cannot wait until the new rules take effect in July 2026, explains Jo Davis, CEO of Auxillias.

The FCA’s Mills Review arrives at a pivotal moment, asking not whether AI belongs in retail finance, but how we, as regulated firms and technology partners, can integrate it safely and transparently within established frameworks.

A recent Scottish court case involved whether or not any deduction in sums to be returned to customers should be made for use of a car where the car is ultimately rejected by the customer.

Artificial intelligence is increasingly being used across financial services to manage customer interactions and streamline internal processes. In consumer credit, where firms communicate with customers about borrowing, repayments, and financial difficulty, AI tools have the potential to improve both efficiency and clarity. As AI adoption increases, firms must ensure these technologies are used responsibly within a regulatory environment shaped by …

The implementation phase of Consumer Duty is over. What we are seeing now is something more probing, more data-driven and significantly more outcomes-focused. For consumer credit firms, the message from the Financial Conduct Authority is clear: the FCA is no longer asking whether firms have implemented the Duty, it is asking whether customers are genuinely better off as a result. …

The rise of financial influencers, or “finfluencers”, is widening access to financial education but can also expose consumers to bad advice, fraud and financial harm. Finfluencers can be a powerful force for good. They bring financial education to a mass audience with a reach that traditional programmes may not have achieved. Content on platforms such as TikTok, Instagram and YouTube …

Following the publication of the FCA’s motor finance consultation paper (CP25/27) in October 2025 and the consultation closing on 12 December 2025, the regulator has confirmed that it will set out its approach on motor finance redress shortly after markets close on Monday 30 March 2026. In a previous update on 4 March 2026, the FCA also outlined planned changes …