The Financial Services Compensation Scheme plans to automate all ‘routine tasks’ with the use of artificial intelligence by 2031, according to its five-year strategy report.
The compensation body has already invested in AI tools but plans to expand their use as part of its drive to build a more cost-efficient customer claims model and keep levy costs under control.
It said in its long term strategy document published today that by ‘strengthening data capability and increasing confidence in the responsible use of artificial intelligence’ it will be able to deliver better customer outcomes.
The FSCS also announced plans to change the way it handles advice-linked claims in order to improve speed, flexibility and decision quality.
The industry-funded consumer safety-net said that it is, “enhancing the way we handle advice claims so we respond efficiently as demand changes, delivering fast, fair and consistent decisions for customers.
“By simplifying our processes and enhancing the tools and technology we use, we will boost productivity in the busiest parts of our service, enabling us to flex resources to meet changing demand without compromising on quality.”
It did not share any further details on its plans to change the handling of advice claims, or a timeline for doing so.
The FSCS published its new five-year strategy for 2026-31 this morning, setting out its three core priorities:
- Continuing to optimise its claims model to deliver timely, high quality customer outcomes at any level of demand
- Embedding a strong purpose and performance-led culture that matches purposefulness with the highest standards of delivery
- Acting as a responsible steward of the levy payers’ funds by operating efficiently, collaboratively and maximising recoveries
Martyn Beauchamp, chief executive of FSCS, said: “This strategy reaffirms our role in supporting financial stability by providing UK consumers with confidence, continuity and fair compensation when firms fail. It sets out how we will deliver that role with purpose, clarity and discipline, and with the readiness to respond effectively, whatever tomorrow brings.”
The five-year strategy also laid out plans to continue to increase awareness of the role of the FSCS among consumers.
In March the compensation body launched a marketing campaign to boost awareness of changes to how savings are protected. The campaign was timed to coincide with the end of the tax year, a time when many households review their finances.