Evolving consumer protection standards Copy

As we approach 2026, I think consumer protection will emerge as one of the key compliance themes across the payments economy. The heightened regulatory scrutiny is driven primarily by the proliferation of AI-driven financial products, as well as increasingly empowered consumers.



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I think within consumer protection, the key focus would be the question of fairness, of transparency and of accountability. In the Asia Pacific region, we are already seeing initiatives like the Monetary Authority of Singapore’s push for responsible use of AI in the financial sector and its push to require all financial institutions to ensure customers receive fair treatment. The Australian Securities and Investments Commission has also recently tightened product suitability requirements by focusing on design and distribution obligations which require product issuers to ensure products are distributed to consumers who are within the defined target market. Enforcement actions like the Australian Unity case show that regulators are serious about enforcing any breaches.



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In 2026 these principles will likely converge into more common global expectations. This means that financial firms must not only comply with the rules or principles behind those rules, they must also demonstrate outcome-based fairness. Firms have to ensure consumers truly understand what they are buying, how their data is being used and all the risks that are involved.



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One key challenge will be on the opacity of the algorithms in consumer decision-making. As AI increasingly power customer interactions, firms will face growing pressure to explain, to audit and to justify these outputs. Regulators may require independent validation of AI models that influence consumer outcomes. This presents both a compliance challenge and an opportunity for firms that can operationalize ethical AI governance.



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Another emerging challenge is on data-driven personalization. While consumers want bespoke experiences, the boundary between personalization and manipulation grows ever so thinner. Regulators may require firms to adopt privacy-by-design frameworks and clearer consent management practices. There will be an opportunity for firms that can embed consumer protection at the core of its strategy.



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As always is the case, the challenge for firms will be about balancing innovation with control. Traditional compliance frameworks are often static while AI evolve continuously. There will be an increase in calls for dynamic compliance, where firms embed continuous monitoring, automated alerts and explainable decisioning.



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Ultimately I think in the near future, we will see a shift from viewing compliance as an obligation to embracing compliance as a foundation of trust. Firms that embrace the mindset where safeguarding consumer interest is integral to their brand value will not only stay ahead of regulation, but also build a competitive advantage.