UK retailers offering financial products are heading into a period of tighter oversight as the FCA sharpens its focus on customer outcomes, fraud prevention, and digital finance in its 2026/27 Annual Work Programme. The shift matters because retailers now offer everything from instalment payments and loyalty-linked credit to insurance and embedded finance through partnerships with banks and fintechs. Consumer Duty rules remain central, with firms expected to demonstrate fair pricing, transparent communication, proper lending checks, and stronger support for vulnerable customers. Buy now, pay later will come under formal FCA regulation from July 2026, introducing new affordability and compliance requirements that could force retailers to rework checkout journeys. The FCA also plans to expand its use of AI to monitor firms, while pushing harder on fraud detection, anti-money laundering, payment security, and operational resilience.
