UK Finance Ltd.

03/06/2026 | Press release | Distributed by Public on 03/06/2026 09:13

Consultation Responses UK Finance response to review into the long-term impact of AI on retail financial services

The review covers a wide range of intersecting issues. In our response we emphasised in particular:

AI, including agentic AI, has the potential to provide a range of advantages to consumers, including greater personalisation, improved financial literacy and access to advice, streamlined and simplified customer journeys including in online shopping, improved fraud protection and greater financial inclusion.

Through the combination of agentic AI with payments, and with data sources such as Open Banking, consumers may soon have access to powerful AI intermediaries that can take actions on their behalf to make purchases, provide advice and acquire / dispose of financial products.

Developments in AI also bring risks, including bias and fraud. Our member firms are leveraging their strong governance and risk management frameworks to manage AI risks.

The pace of change makes it difficult to guess at the state of the market years in the future. Attempting to produce detailed regulatory updates in anticipation of the future will be challenging.

This underlines the strength of the UK's principles-based and outcomes-focused regulatory approach, which remains the right model. It is more able to accommodate the pace of change in technology and potential variations in firm business models than are more prescriptive regimes.

There are, at least for now, areas where best practice in applying some obligations and managing certain AI risks is still developing. We support collaboration between regulators and industry to explore these and share best practice. Formal guidance on AI should only be considered where there is a clearly articulated ambiguity, uncertainty or gap relating specifically to AI.

Nonetheless, we note some areas where regulatory evolution may be needed. In particular, it is essential that the regulatory perimeter keep up with changes in the delivery of financial services, particularly the development of consumer-facing financial intermediaries. This is necessary to maintain consistent consumer protection and avoid an unlevel playing field. The principle of 'same risk, same regulation' should apply. Given the pace of change, we recommend attention be paid to the evolving perimeter as a priority."

UK Finance Ltd. published this content on March 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 06, 2026 at 15:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]