The digitalisation of financial services is changing how consumers make decisions and markets operate. To be an effective regulator, we must respond both to today’s challenges and prepare for tomorrow’s.
We wanted to better understand emerging risks and opportunities so the huge benefits from greater competition and innovation were realised and the harms to consumers reduced.
Fair value
Outcome 1: The development of digital markets and the use of new technologies in financial products and services leads to fair value for consumers
| Metric code | Metric description | Source | Baseline Value | Year 1 values | Year 2 values | Year 3 values | Latest status (year 3 value compared to baseline) |
|---|---|---|---|---|---|---|---|
| SDM1-M01 | The level of consumer satisfaction from using digital financial services and products | FCA Financial Lives survey (FLS) | 8.6 out of 10. Mean score for satisfaction with the most recent experience of using digital or online services offered by financial services providers (2024) | N/A | N/A | This is a new metric. Data was first collected in 2024, see baseline value. | Not Assessed |
| SDM3-M01 | Increase in our perceived effectiveness in supporting the development of digital markets and new technologies in financial services | FCA and Practitioner Panel survey |
(2022/23) | N/A |
(2023/24) |
(2024/25) | Improved |
Suitability and treatment
Outcome 2: The consumer journey for digital financial products and services enables consumers to take decisions in their best interest
| Metric code | Metric description | Source | Baseline Value | Year 1 values | Year 2 values | Year 3 values | Latest status (year 3 value compared to baseline) |
|---|---|---|---|---|---|---|---|
| SDM2-M01 | Reduction in sludge and other harmful digital design features in areas where we have taken action In areas where we have taken action, we will review the extent of sludge and other harmful design features at an appropriate point in the future, once our actions have had time to take effect
| FCA data | N/A | Supervisory action against several firms with harmful digital customer journeys. We highlighted the importance of identifying and remedying sludge practices in the portfolio letter we sent to c700 firms providing high-cost lending products. | Firms reviewed customer journeys and product design as part of Consumer Duty implementation. Some firms removed obstacles and sludge practices that made it more difficult for customers to act in their own interests. | Our research on digital engagement practices in trading apps highlighted how digital design features can lead consumers to invest beyond their risk appetite. | Not assessed |
What the latest metric values tell us
Over our 3-year strategy we set out to:
- Ensure fair value for consumers as digital markets and new technologies develop.
- Support consumer journeys that promote informed decision-making by reviewing and reducing the extent of sludge and harmful digital design practices.
Consumers have broadly positive experiences of using online financial services, with an average satisfaction score of 8.6 out of 10, where 10 means ‘highly satisfied’. We have helped informed consumer decision-making by taking action on websites and apps designed in ways that can harm consumers.
The percentage of firms who agree or strongly agree we have been effective at supporting the development of digital markets and new technologies has increased from 31% in 2022/23 to 36% in 2024/25. Our digital sandbox, which helps firms test innovative offerings in a safe environment, is likely to have contributed to this improvement. We have also collaborated effectively with the CMA, ICO and Ofcom through the Digital Regulation Cooperation Forum to deliver greater regulatory coordination and consistency.