FCA’s Five-Year Plan Faces Challenges from Economic and Technological Shifts, Says Capco Leader

Michael Shand, Managing Principal at Capco, a leading consultancy specializing in financial services technology and management, shared his thoughts on the FCA’S (Financial Conduct Authority) newly announced five-year strategy.

According to Shand, the FCA’s plan closely aligns with the UK government’s broader economic growth agenda. However, he emphasized that further clarification on the strategy’s success metrics would be beneficial. He pointed out that measuring progress is particularly difficult due to external influences beyond the FCA’s control, including macroeconomic trends, competition from other financial hubs, and the evolving role of technology in financial services.

“While banks and other financial services will welcome the spirit of the FCA’s strategy – a growth focus, proportionate oversight, and an ambition to simplify, reduce or remove reporting obligations – its implications could vary widely in practice.

“It is welcome that the FCA is placing consumer outcomes at the heart of the new strategy. It is clearly prioritising greater financial inclusion and resilience through a combination of greater participation in more complex, higher risk investing with a robust approach to protection, for example by cracking down on financial crime.

“The FCA has also recognised the power of technology and innovation – from AI to Open Finance – as key enablers. There is a focus both on efficiency – for the FCA and the firms it regulates – and access, including unlocking more sources of funding.

“The strategy provides a useful reference point for banks and other financial services firms to assess their priorities and opportunities in line with these themes. However, they will no doubt welcome greater clarity as the strategy translates into the FCAs specific plans and actions.