Fairer Finance has today released a new podcast episode featuring Sheldon Mills, recorded on his final day as Executive Director at the Financial Conduct Authority, in which he gives a candid, personal account of his landmark review into AI and financial services - and reflects on eight years shaping UK financial regulation.
Some key highlights include:
Guarding against consumers becoming passive "observers" as AI takes over decisions - Mills likens the risk to how Google Maps have eroded people's sense of direction. Mills draws a direct comparison between AI-driven financial decision-making (the last point on the AI autonomy scale) and the way tools like Google Maps have eroded people's basic sense of direction, warning of the same "cognitive erosion" risk in personal finance. He says: “So that cognitive erosion, I think is really important in financial services, because under the Consumer Duty, we say that consumers should understand what’s going on – terms and conditions, pricing, the impact….We already have enough passivity in financial services, and that’s why we get some of the issues that we’ve seen over the years.”
Mills suggests that financial capability is the key to growth. He says: "If you take a micro view of growth and you think about all the small businesses and the entrepreneurship in the country, and you think about the individual decisions that people and families have to take every day, if you think about access to credit or access to investments, actually those micro choices… in my humble non-economic opinion… are the ones which can really drive growth. If you have people making healthy financial decisions every day and they don't make a bad one, I promise you there will be growth in this country, and it will be a healthier country."
On regret, he points to savings rates. Asked what he'd have pushed harder on during his tenure, Mills says it's the rates banks pay savers - and observes that when interest rates rose in recent years, much of the benefit went to shareholders rather than being passed on to customers. He says: “The area where I sort of I suppose one could have wished one had done a little bit more was maybe put a little bit more pressure on savings…..There's a fairness bit around you know, people shouldn't be stuck on things… and that should be transparent for people with their money. You know, people work really hard for their money, right? And there's not much to go around for lots of people. So getting, even if it's a little bit extra on those savings, I think can be important.”
Debt advice, not investment advice, is where AI help is most in demand. Mills reveals that in the FCA's own research, 45% of people dealing with debt problems said they'd turned to AI for help - significantly higher than the 34% who'd used it for investment advice, challenging the assumption that AI-driven finance is mainly a story about wealthier consumers. He says: “…let’s not just go after things which, quite frankly, help people who have something, some money to save. There are lots of people in this country who don’t have the privilege of being able to worry about where their investments go. So, let’s look across the piece.”
He also reflects candidly on his proudest achievement at the FCA - the Consumer Duty - as well as what's next for him personally.
James Daley, managing director of independent consumer group Fairer Finance, said: "Sheldon Mills has been one of the most consumer-focused voices in financial regulation over the past decade, and this interview shows a level of honesty you rarely hear from a sitting regulator.
“After two years during which the FCA’s secondary growth objective has become primary as a result of political pressure, it’s refreshing to hear a voice from inside the regulator acknowledge that strong consumer protection, and more confident consumers are essential for growth, not a barrier to it.
“The Mills Review is an important piece of work that highlights both the dangers and opportunities that AI presents – and it’s encouraging to have seen the FCA already act on its first recommendation to carry out a review of its perimeter. Whether AI becomes a force for good or ill in financial services is very much in the hands of FCA and Government. This is a crucial moment which may determine which path we head down.”
Listen to the full interview
The complete interview with Sheldon Mills is available now on the Fairer Finance podcast, available on Spotify, Apple Podcasts and all major podcast platforms. Mills is Fairer Finance’s second special guest – coming after FCA CEO, Nikhil Rithi, appeared in a candid interview in February 2026.
Listen here: https://www.fairerfinance.com/insights/podcast
