The Financial Conduct Authority (FCA) has set out its 2026/27 work programme, outlining a clear shift towards becoming a smarter, more data-driven regulator.
A key part of this new phase is the FCA’s greater use of AI, automation, and digital tools to improve supervision, risk identification, and decision-making.
For payments and e-money firms, this marks an important change in how regulation will work, bringing both new opportunities and higher expectations.
A smarter, more data-driven regulator
Key initiatives outlined by the FCA include:
- AI-powered authorisations to support faster and more consistent decision-making
- Generative AI tools to review documents submitted by firms
- Enhanced data analytics to identify risks and triage cases more effectively
- Automated data feeds between firms and the FCA to improve accuracy and timeliness
- Expansion of the Supercharged Sandbox, allowing firms to test AI-driven products using synthetic data
While technology will have a bigger role, the FCA has made it clear that human decision-making will still be central.
What this means for payments and e-money firms
For payments and e-money firms, these changes will likely affect both authorisation and ongoing supervision.
1. Faster Authorisations, but Higher Expectations
AI tools are expected to make authorisation faster. However, firms should also be ready for more scrutiny and consistency in how applications are reviewed.
2. Increased Data-Driven Supervision
The FCA is getting better at collecting and analysing data, so firms will need to make sure:
- Data quality is accurate and timely
- Regulatory submissions are robust and well-structured
- Internal systems can support increased transparency
3. Reduced Administrative Burden (in some areas)
The FCA plans to:
- Remove certain regular data returns
- Reduce the frequency of others
- Move more processes onto My FCA
This should make some parts of compliance easier, but firms will still need strong frameworks in place.
4. More Proactive Risk Identification
With improved analytics and intelligence-sharing, the FCA will be able to:
- Identify risks earlier
- Intervene more quickly
- Focus on areas of greatest harm
This highlights why proactive compliance is important, instead of waiting to fix problems after they arise.
Supporting growth — with a continued focus on risk
Alongside regulatory improvements, the FCA is also focused on supporting innovation and growth across financial services.
Key developments include:
- Expansion of international presence (UAE, China, India)
- Progressing regulation of Buy Now Pay Later (BNPL) products
- Enhancing financial promotion oversight through a more intelligence-led approach
- Exploring improvements to payments and open banking frameworks
For payments firms, the proposed updates to the regulatory framework show that the FCA wants to balance innovation with careful risk management.
Fees: minimal increases despite investment
Despite significant investment in technology and data capabilities, the FCA is proposing only:
- A 1% increase in minimum, flat and application fees
- An overall Annual Funding Requirement (AFR) increase of just 0.7%
This represents the lowest increase in a decade, signalling a focus on efficiency and cost control.
Key takeaways for firms
So, what steps should payments and e-money firms take now?
- Get ready for a more data-driven regulator by making sure your systems, data, and reporting are strong.
- Expect decisions to be faster and more consistent, especially when it comes to authorisations.
- Strengthen your internal controls, since proactive compliance will be important as risks are spotted earlier.
- Embrace digital engagement, as more regulatory processes will move to central platforms.
- Stay alert to changes in regulatory boundaries, especially in payments, AI, and financial promotions.
The FCA’s latest programme shows a clear move toward technology-driven regulation, with AI and data now central to how firms are supervised.
This should make things more efficient and smoother in some areas, but it also means firms need to keep high-quality data, strong governance, and clear processes.
For payments and e-money firms, the message is clear: regulation is becoming faster, smarter, and more proactive.
How Neopay can help
At Neopay, we know that keeping up with regulatory changes, especially as the FCA becomes more data-driven and technology-focused, can be challenging for payments and e-money firms.
Our team helps firms at every stage of the regulatory process, from authorisation and engagement to ongoing compliance and audit readiness. As the FCA focuses more on data quality, governance, and proactive risk management, we make sure your frameworks, systems, and controls are up to standard.
Whether you need help preparing for authorisation, improving your compliance framework, or responding to more supervision, we offer practical, tailored advice to keep you aligned with regulations and confident in your approach.
Get in touch with our team today to discuss how we can support your compliance journey.
