FLA backs AI innovation while calling for stronger consumer safeguards
The FLA said AI is already changing how consumers search for, compare and make financial decisions.
The Finance & Leasing Association (FLA) has welcomed the recommendations of the Government-commissioned Mills Review, saying artificial intelligence (AI) has the potential to transform consumer finance provided innovation is matched by appropriate consumer protections.
Responding to the review, the FLA said AI is already changing how consumers search for, compare and make financial decisions, creating opportunities for lenders to improve customer outcomes while highlighting the need for greater transparency and trust.
Shanika Amarasekara MBE, chief executive of the FLA, said: “AI is reshaping consumer finance faster than many people realise.
“It’s changing how people search, compare and make financial decisions, and the Mills Review rightly recognises that we are moving towards a world where financial support is more personalised, continuous and, in some cases, delegated.
“For lenders and finance providers, the prize is enormous. AI can make borrowing simpler, improve fraud detection, identify financial difficulties earlier and deliver better outcomes for customers.
“But innovation will only succeed if people trust it. Customers need to understand when AI is being used, have confidence that decisions are fair and transparent, and remain in control.
“Getting the next phase right matters far beyond financial services. Finance & Leasing Association members provide £163bn of new lending every year, financing the real economy by helping millions of consumers make essential purchases and enabling businesses across the UK to invest, grow and create jobs.
“Responsible adoption of AI can make that finance faster, more efficient and more accessible.
“The challenge now is to strike the right balance. Firms need a policy environment that gives them the confidence to innovate and invest responsibly, while ensuring consumers remain protected.
“Policymakers should also consider the growing influence of AI tools operating outside the regulated financial sector.
“As more people turn to AI to help make financial decisions, the rules must evolve to ensure trust, fair competition and innovation continue to work hand in hand.”
Related
The Interview… Dawid Kotur, CEO of Curvestone AI
Gen H launches AI packaging agent to cut mortgage application delays
AI adoption expands beyond underwriting as insurers accelerate enterprise-wide rollout, GlobalData finds
Nivo launches new AI webinar for mortgage brokers
Consumer Duty has changed culture but firms still have work to do, says Capco
Consumer Duty enters new phase as FCA focus shifts to customer outcomes, says MorganAsh
Twenty7tec integrates ZeroKey with ADVICE to cut manual rekeying
Cohabiting couples risk financial penalty despite proposed rights reforms, Royal London warns
Stonewater partners with AI specialist to strengthen property management
Elan Technology Group Ltd becomes associate member of CoPSO
Signicat secures UK digital identity certification
