- The review sets out how AI could reshape retail financial
services for consumers, firms, markets and regulators by 2030 and
beyond.
Led by FCA executive director Sheldon Mills and commissioned by
the Board, The Mills Review is the
first work of its kind initiated by a regulator globally.
Drawing on views from across the financial services landscape,
the report identifies 4 major AIdriven shifts likely to impact
retail financial services: the transformation of firm operations;
the evolution of consumer journeys; the reshaping of competition
and market power; and the amplification of fraud and cyber risks.
The report finds there is already consumer appetite for the use
of agentic AI in personal finance, with research commissioned by
the FCA showing that a fifth of people equivalent to 11 million
UK adults are likely to use AI that can act autonomously within
pre-set goals. But consumers in the survey are concerned about
trust and control of AI.
The Review concludes that AI is likely to become a defining force
in retail financial services, transforming how firms operate, how
consumers make financial decisions and how markets function.
While AI has the potential to improve access, personalisation and
efficiency, it could also amplify risks associated with fraud,
cyber security, consumer harm and market concentration.
Executive director Sheldon Mills said: '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 in
our world-leading financial services sector.'
Key recommendations
The Mills Review also outlines 7 recommendations for the FCA
Board and Executive to consider, which are as follows:
- Secure
and adapt the regulatory perimeter.
-
Strengthen system-wide coordination and oversight.
- Monitor
the transition to autonomous models and adapt regulatory
frameworks.
- Scale
up the FCA's AI Lab to support AI models and system innovation in
financial services.
- Enable
the foundations for agentic finance.
- Build
and adopt an AI-enabled agentic supervisory model.
- Develop
a trusted public-interest AI-enabled financial capability
service.
FCA response
Ashley Alder, Chair of the FCA, said: 'The Board is enormously
grateful to Sheldon for the rich, comprehensive report he's
delivered. His work anticipates the fundamental change agentic AI
will bring to financial services. It highlights how consumers and
firms can reap significant potential benefits as well how risks
can be managed.
'As is clear in the report, we need to keep pace with a rapidly
changing environment and the principles-based, outcomes focussed
approach we've taken on AI relying on the Consumer Duty and
Senior Managers Regime has been critical to us doing so. The
recommendations build on work the FCA has been doing not least
allowing firms to test their use of AI with us and our own use of
AI to be a smarter regulator, more efficient and effective.'
Notes to editors
-
Read The Mills Review.
- In
January, the FCA launched a review into the implications of
advanced AI on consumers, retail financial markets and
regulators.
- The
Review was led by Sheldon Mills and builds on the FCA's existing
work on AI. This includes its AI Discussion
Paper, AI Sprint,
and AI
Lab including AI Live Testing and
its groundbreaking Supercharged
Sandbox supported by NVIDIA.
- As part
of The Mills Review, in April 2026, Yonder Consulting conducted
a survey of more than 5,000 UK
retail financial services consumers (PDF), defined as
individuals holding a day-to-day bank account, such as a
current or savings account.
- Quotas
were set to ensure the survey was representative of the
population of UK retail finance service consumers on key
demographics including age, gender, ethnicity, region, housing
tenure and internet ability.
- As part
of the survey, consumers were presented with a range of plausible
nearterm use cases for AI in financial services. The findings
show that 20% of consumers would be likely to use AI capable of
acting autonomously within pre-set goals.
- Running
in parallel to this work, the FCA will launch an AI good and poor
practice publication later this year. As part of this work, the
regulator has engaged directly with firms to find out what is
working well, where firms are facing challenges, and where
further clarity would help.
- Find
out more on how the FCA is engaging with
firms to help shape its approach to AI.
