AI will reshape finance, but not remove the need for advice

By Joe Aston, Sales and Commercial Director, Aria Finance

Financial Reporter

The FCA’s latest review into the future of artificial intelligence paints a compelling picture of financial services over the next decade. AI is expected to reshape customer journeys, firm operations and fraud prevention, fundamentally changing how consumers interact with financial products.

For specialist finance, however, the debate should not centre on whether AI will replace brokers. Instead, it should focus on how AI can reduce administration, giving brokers more time to apply their knowledge where it matters most. Technology is evolving rapidly, but specialist lending has always relied on something AI still struggles to replicate, sound judgement.

Faster processes, greater value from specialist advice

There is no doubt that AI will make specialist lending faster. Many of today’s manual tasks are well suited to automation, from analysing bank statements to preparing applications.

The likely result is shorter turnaround times, reduced administration and quicker access to finance, which is good news for brokers and customers alike. But removing administrative work does not remove the need for specialist advice. If anything, it makes that advice even more valuable.

The role of a broker has never simply been to complete paperwork. It is to understand the circumstances behind an application and recognise where specialist knowledge can unlock solutions that standard lending criteria might overlook.

That is particularly true in specialist lending, where many cases involve circumstances that do not fit neatly into standard criteria. Whether it is adverse credit, unusual income, complex ownership structures, mixed-use properties or a client working to a tight deadline, these are not decisions that can be reduced to a simple algorithm.

On paper, applications like these can appear difficult. In reality, they often require the right lender with the right appetite. Relationships, market knowledge and a detailed understanding of lender criteria remain invaluable.

AI may identify potential options more quickly, but understanding which lender is most likely to support a case, and how best to position that application, comes from experience that cannot be automated.

Borrowers still want reassurance

One of the FCA’s most interesting findings is that consumers are far more comfortable using AI for lower-risk financial decisions than for significant borrowing. That is hardly surprising. A mortgage or specialist finance application is not simply another online purchase; for many borrowers, it is one of the largest financial decisions they will ever make.

The review also highlights that a growing number of consumers are already turning to general-purpose AI tools for financial guidance. That demonstrates AI is influencing borrowing decisions today, rather than representing a future possibility. While AI can be a useful source of information, it cannot fully understand an individual's circumstances or take responsibility for the outcome of a borrowing decision.

When circumstances become more complicated, borrowers are looking for more than data. They want reassurance from someone who can explain the options, challenge assumptions, answer difficult questions and navigate unexpected issues as they arise.

Technology can support those conversations, but it does not replace them. Equally important is accountability. Regulated advisers are responsible for the recommendations they make and the outcomes they deliver. AI can generate suggestions, but it cannot assume responsibility if those suggestions prove unsuitable.

Rather than viewing AI as competition, brokers should see it as another tool. Used well, AI has enormous potential to improve productivity by summarising documents, identifying missing information, speeding up research, streamlining compliance and reducing repetitive administration.

That gives advisers more time to focus on what clients value: interpreting complex circumstances, challenging assumptions and solving problems that fall outside standard lending criteria. As routine tasks become increasingly automated, specialist advice becomes the real point of differentiation.

The FCA also highlights the challenges. As AI becomes more sophisticated, fraud is likely to become more convincing and cyber threats more complex. That makes robust verification, due diligence and responsible governance even more important.

As firms continue adopting AI, they must also ensure its use supports good customer outcomes and aligns with Consumer Duty. AI should strengthen decision-making, while accountability for advice must always remain with regulated firms.

The future is technology plus expertise

Specialist lending has always adapted. The sector has embraced digital applications, electronic signatures, open banking and automated underwriting without losing the human expertise that underpins successful outcomes. Artificial intelligence is simply the next stage of that evolution.

As AI becomes more embedded in consumers' financial lives, brokers are likely to engage with clients who are better informed, but not necessarily better advised. Increasingly, the adviser’s role will be to interpret information, challenge misconceptions and apply professional judgement to circumstances that no generic AI model can fully understand.

Ultimately, specialist lending has never been about paperwork. It has always been about understanding individual circumstances, identifying the right lending solution and helping clients navigate complex decisions with confidence. AI will undoubtedly become an increasingly valuable tool, but it is unlikely to replace the judgement, accountability and relationships that sit at the heart of specialist advice.