Dealers and lenders may need to utilise AI agent compliance for motor finance if new recommendations to the Financial Conduct Authority (FCA) are adopted, says iVendi.
The Mills Review, by FCA executive director Sheldon Mills, sets out how AI could reshape retail financial services.
James Tew, iVendi CEO, said: “The FCA Review could have significant implications for anyone involved in retail motor finance who is using, or plans to adopt, agentic AI.
“Our interpretation is that a second level of AI, ideally using completely separate technology, will be required for oversight of AI agents which are being used for any regulated activity.
“If this oversight AI flags up an issue in real time, there would be a kill switch which ends the conversation immediately and passes the consumer to a human expert. It would also independently score every interaction and alert a senior manager where issues appear to have arisen.”
All agentic AI activity would need to be recorded and monitored.
The Mills Review recommends the regulator eventually build and adopt its own “agentic supervisory model.”
Different lenders and sometimes dealers had different interpretations of the FCA’s Consumer Credit (CONC) Sourcebook, which sets out the rules and requirements for firms engaged in consumer credit activities in the United Kingdom.
Tew suggests that this could be a weakness of an AI oversight system.
He added: “Despite this, we think the Mills recommendations are welcome. There needs to be guidance on how agentic AI is used within motor finance and other areas of credit, and its general thinking is sound.”
iVendi is working with a variety of lenders and dealers to use its APIs as the basis for AI agents.
