The Financial Conduct Authority revealed that 47 fintech firms have been compelled to overhaul their fee structures following a targeted review of pricing practices under the Consumer Duty framework, which came into full effect for existing products in July 2024. The regulator's thematic review, published on Wednesday, found that a significant minority of digital financial services providers were failing to demonstrate that their pricing delivered fair value to customers, particularly in the payments, lending, and investment platform sectors.

The FCA's findings highlighted several recurring issues, including subscription fees that were difficult to cancel, foreign exchange markups that were not clearly disclosed at the point of transaction, and tiered pricing structures where the cheapest advertised rate was available to fewer than 5 per cent of customers. Director of consumer and competition Sheldon Mills said the regulator would not hesitate to use its enforcement powers where firms fell short. "Consumer Duty is not a box-ticking exercise. We expect firms to actively monitor whether their products and services are delivering good outcomes, and to take swift action when they are not," he said.

Industry responses have been mixed. Several fintech chief executives have privately expressed frustration that the FCA's expectations remain vague, making compliance costly and uncertain. The Fintech Alliance estimated that the average cost of Consumer Duty compliance for a mid-stage fintech has reached £380,000 annually, a figure that trade body UK Finance described as disproportionately burdensome for smaller firms. The FCA said it would publish additional guidance in the autumn specifically tailored to digital-first financial services providers.