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On March 2026, the Financial Conduct Authority (FCA) published its Regulatory Priorities report for retail banking, establishing four key focus areas for the next 12 months. The report applies to retail banks and building societies operating in the United Kingdom and replaces more than 40 portfolio letters, consolidating supervisory expectations into a single guidance document. The FCA's four priority areas are: access to cash and essential banking services; good outcomes from products and services; fighting fraud and other financial crime; and operational resilience and data security. Under the first priority, the FCA will monitor designated firms' compliance with Access to Cash sourcebook requirements and assess branch closure notifications to ensure consumers and businesses maintain reasonable access to cash services. The FCA has noted that over 200 banking hubs and nearly 150 other cash and deposit solutions have been established to support this objective. Regarding consumer outcomes, the FCA expects firms to improve data-led monitoring and assessment of retail customer outcomes under the Consumer Duty, with targeted action against outliers delivering poor value or outcomes for vulnerable customers. For financial crime, the FCA will use data analytics to identify non-compliant firms and continue reviewing money laundering controls. On operational resilience, firms must identify emerging risks, refine action plans for critical third-party dependencies, and improve cyber protection strategies. The FCA will also support innovation, including artificial intelligence adoption through its Supercharged Sandbox and AI Live Testing programmes, with an evaluation report expected by year-end 2026. Additional areas of focus include business banking outcomes, open banking evolution, stablecoins and tokenised deposits, and a motor finance commission review. Key implementation dates include the targeted support regime going live on 6 April 2026, an open finance roadmap expected in March 2026, and incident and outsourcing reporting final rules anticipated in H1 2026. REFERENCE: Financial Conduct Authority. (2026). Regulatory Priorities: Retail Banking. Available at: www.fca.org.uk

On March 12, 2026, the Financial Conduct Authority (FCA) published its regulatory priorities report for retail banking. This report will be published annually and replaces the portfolio letters the FCA used to issue. The report focuses on four priorities and sets out expectations of firms beneath each: Access to cash and essential banking services. Fill significant gaps in local cash access services in accordance with the FCA’s Access to Cash sourcebook (where the firm is designated under the regime). Avoid causing foreseeable harm to retail customers when implementing digital first transformations. Comply with the Basic Bank Account regulations as set out in the Payment Accounts Regulations (where the firm is designated), making it easy for eligible consumers to apply. Ensure financial crime controls don’t lead to unnecessary or overlong account freezing. Fill significant gaps in local cash access services in accordance with the FCA’s Access to Cash sourcebook (where the firm is designated under the regime). Avoid causing foreseeable harm to retail customers when implementing digital first transformations. Comply with the Basic Bank Account regulations as set out in the Payment Accounts Regulations (where the firm is designated), making it easy for eligible consumers to apply. Ensure financial crime controls don’t lead to unnecessary or overlong account freezing. Good outcomes from products and services. Keep improving data and management information dashboards for monitoring and assessing consumer outcomes, and their governance over these. Take action where need is identified to support consumers in pursuing their financial objectives and to avoid causing them foreseeable harm, including for those in vulnerable circumstances. Keep consumer outcomes front and centre when designing and delivering products or services, especially new, innovative or AI-based ones. Keep improving data and management information dashboards for monitoring and assessing consumer outcomes, and their governance over these. Take action where need is identified to support consumers in pursuing their financial objectives and to avoid causing them foreseeable harm, including for those in vulnerable circumstances. Keep consumer outcomes front and centre when designing and delivering products or services, especially new, innovative or AI-based ones. Fighting fraud and other financial crime. Help consumers understand fraud risks and support victims fairly. Monitor and mitigate the risks firms and consumers face, refining defences and control frameworks and promptly and effectively remediating any weaknesses. Keep improving systems and controls, to combat bad actors’ evolving tactics and technologies. Learn from FCA outputs and keep investing in resources and controls, including advanced technology such as AI where appropriate. Help consumers understand fraud risks and support victims fairly. Monitor and mitigate the risks firms and consumers face, refining defences and control frameworks and promptly and effectively remediating any weaknesses. Keep improving systems and controls, to combat bad actors’ evolving tactics and technologies. Learn from FCA outputs and keep investing in resources and controls, including advanced technology such as AI where appropriate. Operational resilience and data security. Identifying emerging risks to resilience, incorporating these in scenarios and testing to refine action plans for remediating vulnerabilities and remaining within impact tolerances. Continuing to evolve and improve cyber protection and information protection strategies, with tested recovery plans to mitigate harms from cyberattacks and third-party failures Managing any live issues within impact tolerances, managing the impact on customers and communicating effectively with them. Participating in cross-industry initiatives where appropriate, to help improve system-wide resilience and recovery strategies. Identifying emerging risks to resilience, incorporating these in scenarios and testing to refine action plans for remediating vulnerabilities and remaining within impact tolerances. Continuing to evolve and improve cyber protection and information protection strategies, with tested recovery plans to mitigate harms from cyberattacks and third-party failures Managing any live issues within impact tolerances, managing the impact on customers and communicating effectively with them. Participating in cross-industry initiatives where appropriate, to help improve system-wide resilience and recovery strategies. The report also highlights other areas of focus such as business banking outcomes, innovation in retail banking, the motor finance commission review, and the Senior Managers and Certification Regime.

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Financial Conduct Authority Sets Retail Banking Regulatory Priorities for 2026

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UK’s Financial Conduct Authority Publishes Report on Its Regulatory Priorities for Retail Banking