The FCA’s Regulatory Priorities: Retail Banking report for 2026 sets out a more focused and outcome‑driven supervisory agenda for retail banks and building societies. While many of the themes will be familiar, the report marks a shift in emphasis: from policy alignment and stated intention to demonstrable oversight, data and evidence.
Retail banking continues to undergo structural change. Consumers are using branches less, digital and mobile channels more, and business models are diversifying as fintechs and new entrants play a larger role. At the same time, fraud losses, cyber risk and operational dependencies are increasing. Against this backdrop, the FCA has consolidated its expectations into four priority areas that boards and senior executives are expected to review and act on over the next 12 months.
Across all four priorities, a consistent regulatory message emerges: firms must be able to show that controls operate effectively in practice and that consumer outcomes are monitored, understood and acted upon.
Access to cash and essential banking services
Despite the pace of digital transformation, the FCA stresses that access to cash and essential banking services remains a core priority. Firms undertaking branch closures or moving to digital‑first models are expected to avoid foreseeable consumer harm, particularly for customers who rely on face‑to‑face services or are less digitally capable.
Designated firms are required to fill significant local gaps in cash access in line with the Access to Cash regime and comply with basic bank account obligations. The regulator also highlights the need to ensure that financial crime controls do not result in unnecessary or prolonged account freezing. Increasingly, scrutiny will extend beyond high‑level strategy to the evidence supporting individual decisions, including how customer needs were assessed and alternatives evaluated.
Delivering good outcomes under the Consumer Duty
The Consumer Duty underpins the FCA’s second priority: delivering good outcomes from products and services. While the regulator acknowledges progress across the sector, it is clear that many firms still need to strengthen how they monitor and evidence outcomes on an ongoing basis.
The FCA expects firms to continue improving the quality of their data, management information and governance arrangements so boards can identify where customers may be experiencing harm, receiving poor value or requiring additional support. Vulnerable customers and those in financial difficulty remain areas of particular focus.
As retail banks increasingly deploy automated and AI‑enabled tools, the FCA reiterates that innovation must not dilute accountability. Consumer outcomes must remain central to product design, distribution and ongoing monitoring, with firms able to evidence how risks are identified and mitigated in practice.
Fighting fraud and financial crime
Fraud and financial crime remain persistent and evolving threats. The FCA expects retail banks to continuously monitor and refine their controls in response to emerging risks, rather than relying on static frameworks.
This includes not only prevention but also how firms support consumers when harm occurs. Fair treatment of fraud victims, prompt remediation of control weaknesses, and effective escalation to senior management all form part of the regulator’s expectations. For boards, this reinforces the need for end‑to‑end visibility over control performance, not just assurance that policies exist.
Operational resilience and data security
Operational resilience and data security complete the FCA’s priority set. Firms are expected to identify their important business services, map critical dependencies – including third parties – and remain within impact tolerances during disruption.
Data security is treated as integral to resilience, particularly as digital services and AI‑enabled processes scale. Weaknesses in data governance, third‑party oversight or incident response capabilities will continue to attract close supervisory attention.
From intention to proof
Taken together, the FCA’s retail banking priorities reinforce the regulator’s direction. Firms are no longer assessed primarily on stated intent or policy alignment, but on their ability to evidence governance, oversight and outcomes at scale.
As the FCA becomes more data‑led in its supervision, retail banks that can demonstrate traceability, accountability and robust monitoring across customer access, product outcomes, financial crime and operational resilience will be better placed to withstand regulatory scrutiny than those relying on narrative assurance alone.
Recordsure’s regulatory‑grade AI analytics tools deliver customer interactions oversight and actionable insights supported by evidence and audit trails – giving boards confidence when scrutiny increases.
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