FCA Mills Review: AI to reshape UK retail finance by 2030

The Financial Conduct Authority published The Mills Review on July 6, 2026, concluding that artificial intelligence will reshape UK retail financial services by 2030 and increase risks including fraud, cyber attacks and market concentration. The review was written by FCA director Sheldon Mills.

The report outlines how AI is likely to change how firms operate, how consumers access and choose products, and how competition and markets function. It says AI can improve access, personalisation and efficiency but can also magnify harms through more sophisticated fraud and greater vulnerability to cyber incidents.

The FCA cites research showing about one in five UK adults, roughly 11 million people, are likely to use forms of AI that can act autonomously within pre-set goals. The review notes consumers have concerns about trust and control over AI-driven services. Mills wrote, “AI will transform financial services by 2030. It creates significant opportunities for consumers, firms and the wider economy.”

Mills sets out a roadmap for industry, regulators and government. Key recommendations include clearer regulatory guidance, stronger testing of AI systems, improved data and security standards, closer co-ordination between regulators and government, requirements for firms to explain AI-driven decisions to customers, and ongoing monitoring of agentic systems that can act without continuous human direction.

The report follows criticism in January from the House of Commons Treasury Committee, which said regulators had taken a “wait-and-see” approach and warned that major public financial institutions were not managing the risks from increased AI use effectively.

The review highlights specific regulatory challenges in areas such as automated trading and agentic commerce. The Bank of England is exploring so-called kill switches to halt trading if AI models behave unexpectedly. At the European Central Bank’s Sintra forum, Bank of England deputy governor Sarah Breeden warned regulators must reassess whether technology-agnostic frameworks remain sufficient as AI capabilities grow.

Ashley Alder, chair of the FCA, described the review as demonstrating how consumers and firms can gain benefits while managing risks. Alder noted the recommendations build on FCA work, including an AI testing initiative that allows firms to trial systems with the regulator and the FCA’s own use of AI to support supervision.

The review will be used by regulators, government and industry as they consider policy and operational responses to AI in retail financial services.