(3 min read)
In this edition, we provide an update on the FCA's findings from multi-firm review of consumer credit firms and non-bank mortgage lenders and the recent announcement in the Chancellor's Mansion House speech on modernising the redress system and the follow up call for input. In this issue we also look at the use of artificial intelligence in the retail lending sector in light of the recent report from the FCA and the Bank of England on their third survey of artificial intelligence and machine learning in UK financial services.
FCA's findings from multi-firm review of consumer credit firms and non-bank mortgage lenders
On 23 October 2024, the Financial Conduct Authority (FCA) published its findings following a multi-firm review of consumer credit firms and non-bank mortgage lenders. The review revealed that most firms need to enhance their risk governance and management practices. In its report the FCA has provided examples of good practices and areas for improvement for these firms.
Read more on the FCA's findings here.
Recent announcement in the Chancellor's Mansion House speech on modernising the redress system and the follow up call for input
On 14 November 2024, Chancellor of the Exchequer, Rachel Reeves, delivered her first Mansion House speech. The UK government is taking significant steps to modernise and enhance the financial services sector to support economic growth and increase competitiveness, while maintaining high regulatory standards. Ms Reeves announced that the Financial Ombudsman Service (FOS) framework is set to be updated to better serve consumers and provide clearer expectations for both consumers and financial firms. A joint Call for Input from the FCA and FOS was published on the same date, setting out proposals on modernising the redress system.
Read more on the proposed changes to the redress framework here.
Artificial intelligence in UK financial services survey – implications for consumer finance firms
The Bank of England (BoE) and the Financial Conduct Authority (FCA) have jointly released a survey report titled "Artificial Intelligence in UK Financial Services - 2024." This document provides an in-depth analysis of the current state and future projections of artificial intelligence (AI) and machine learning within the UK financial sector. The report builds upon previous surveys conducted in 2019 and 2022, aiming to offer continuous insight into the adoption, implementation, and implications of AI technologies by firms regulated by the BoE and/or FCA.
Here we look at the findings through a consumer finance lens.
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