In its latest update on consumer finance priorities, the Financial Conduct Authority (FCA) has outlined how it plans to supervise the sector in the coming year. The direction is clear; regulation is increasingly focused on outcomes and consumer impact rather than simply rule-based compliance.
At its core, the FCA’s focus has shifted from whether firms are following rules to whether consumers are actually better off as a result of doing business with them. That’s a subtle but important distinction. Three priorities sit at the heart of this: access to credit that genuinely suits the borrower’s circumstances, better support for customers who find themselves in financial difficulty, and more effective redress when things go wrong.
Together, these priorities highlight a broader effort to keep the credit market accessible and fair, especially as many households continue to face financial strain. The regulator is clearly aware that a credit market which appears functional but fails people in practice isn’t acceptable. The question for firms now isn’t just what they’re doing, but what impact it is having.
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Credit must remain accessible
The FCA will examine whether consumers can access credit that truly suits their needs. While many borrowers are able to obtain credit, some consumers find it difficult to secure affordable options, often due to limited credit histories or changing financial situations.
The regulator is encouraging firms to explore ways to improve access without compromising responsible lending standards. This may involve rethinking product design, providing tools to help customers better understand their finances, or directing them to support such as budgeting resources and eligibility checks for grants or benefits.
Data and technology are also anticipated to have a significant role. Developments such as Open Banking and enhancements in credit information may help lenders form a clearer understanding of a borrower’s financial position, allowing for more precise lending decisions and potentially increasing access for those with limited credit histories.
At the same time, the systems supporting these processes must operate effectively for both customers and frontline teams. Well-designed platforms can help agents access the right information quickly, guide conversations with borrowers, and ensure that decisions are consistent, transparent, and aligned with responsible lending expectations.
For firms, the challenge will be balancing increased financial inclusion with the need to ensure credit products remain responsible, sustainable, and deliver fair value for consumers.
Strengthening support for consumers
Another key focus is how firms assist customers who start to face financial difficulties. While more people are seeking debt advice than in previous years, that does not necessarily mean everyone who needs help is receiving it. Many borrowers still feel overwhelmed by debt and unsure where to turn.
The FCA aims for firms to improve access to support and provide it earlier, before financial pressures escalate. Removing unnecessary barriers and increasing visibility of assistance in the customer journey will be essential.
There is also increasing scrutiny of the quality of guidance customers receive when they seek assistance. Clear and timely communication matters. If borrowers are expected to make informed decisions about repayment options or forbearance arrangements, the information provided must be relevant, understandable, and tailored to their individual circumstances.
The regulator has also indicated it will continue collaborating with organisations such as the Insolvency Service and recognised professional bodies to improve standards across the debt advice sector and address areas where consumer harm could still occur.
For firms, the direction is clear. Earlier engagement, clearer communication, and more thoughtful support processes will increasingly define what good practice looks like in this area. Just as importantly, firms will need the capability to operationalise this effectively, supporting both customers and collections agents with the appropriate tools and insights at the right moment. This involves using data, customer behaviour, and interaction signals to identify potential vulnerability, prompt appropriate actions, and clearly highlight the support options available when they are most needed.
Improving complaints and redress processes
Ensuring consumers can challenge decisions and seek redress when issues occur is vital for maintaining trust in financial services. For regulators, effective complaint handling is not only about resolving individual disputes but also about identifying wider issues and improving outcomes across the market.
Accessibility remains a key focus. Consumers should be able to raise concerns easily and without unnecessary barriers. Digital channels are supporting firms in this effort, with conversational AI tools allowing complaints to be submitted via webchat, messaging platforms, or voice services at any time.
Technology is also enhancing how complaints are recorded and processed. AI-driven systems can guide customers through the process by prompting targeted questions that clarify the issue from the outset. By collecting the necessary details early, companies can minimise repeated follow-ups and ensure complaints are evaluated more fairly and accurately.
Automation can then support the early stages of triage, directing complaints to the appropriate teams, and helping firms respond more swiftly. At the same time, structured workflows can help maintain clear and consistent communication with customers while remaining aligned with regulatory expectations.
Transparency will remain vital, and keeping detailed records of complaints, actions taken, and outcomes achieved enables firms to show accountability, spot recurring issues, and supply evidence to regulators when needed.
Shifting toward measurable outcomes
These priorities outline the FCA’s ongoing work towards an outcomes-based regulatory approach. This means the regulator is increasingly focused not just on whether firms comply with rules, but on whether their practices achieve fair and positive results for customers. For firms within the credit ecosystem, the emphasis will be on demonstrating that the products they offer, the support they provide, and the processes they use genuinely deliver improved outcomes for borrowers.
Laura Dale-Gough, Director of Business Development at Aryza
