AI to reshape retail finance by 2030, FCA review finds
The Financial Conduct Authority (FCA) has published 'The Mills Review', a landmark report detailing how artificial intelligence will reshape retail financial services by 2030. The review identifies significant opportunities for consumers and firms, alongside amplified risks.
Four shifts, 11 million users
The Mills Review, led by FCA executive director Sheldon Mills, is the first work of its kind initiated by a regulator globally.
It identifies four major AI-driven shifts for retail financial services: transformed firm operations, evolving consumer journeys, reshaped competition and market power, and amplified fraud and cyber risks.
FCA research shows a fifth of people – 11 million UK adults – are likely to use autonomous AI, but concerns about trust and control persist.
While AI offers potential for improved access, personalisation, and efficiency, it could also amplify risks in fraud, cyber security, consumer harm, and market concentration.
Mills stated, 'Artificial intelligence will transform financial services by 2030.
It creates significant opportunities for consumers, firms and the wider economy.
This report sets out a roadmap for how industry regulators and government can prepare for the next phase of AI-driven change.
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Seven recommendations for future-proofing
The Review outlines seven recommendations for the FCA Board and Executive.
These include adapting the regulatory perimeter, strengthening system-wide coordination, and monitoring the transition to autonomous models.
Further recommendations focus on scaling the FCA's AI Lab, enabling agentic finance, building an AI-enabled supervisory model, and developing a public-interest financial capability service.
Ashley Alder, Chair of the FCA, praised the 'rich, comprehensive report,' noting the FCA's principles-based approach, relying on the Consumer Duty and Senior Managers Regime, has been critical.
The regulator plans to launch an AI good and poor practice publication later this year.