Monzo tests AI that plans how much you save each month
Key Points
- Monzo tested an AI assistant that turns savings goals into monthly plans
- The trial ran under the FCA's AI Live Testing programme with Advai
- The assistant tracks progress and revisits plans when circumstances change
- Monzo backed outcomes-based AI regulation over model-specific rules
- Barclays, Experian and UBS joined a second testing cohort in April
Monzo has tested an AI savings assistant with real customers under FCA supervision.
Steve Martin, VP of engineering at Monzo, detailed the trial in a post on the Monzo blog, which covered the bank’s work in the FCA’s AI Live Testing programme.
The assistant turns a goal, such as a holiday or a rainy-day fund, into a manageable amount to save each month. It also tracks how a customer is progressing and revisits the plan when their circumstances change.
Monzo said it kept the scope of the trial deliberately narrow. The bank built the assistant to help customers think through their plans and reach their own decisions, rather than make those decisions for them.
The bank said generative AI raises particular problems in financial services because it behaves differently from traditional software. Its answers can vary between conversations, rest on unstated assumptions or sound more certain than the underlying information supports.
Monzo said its discussions with the FCA focused on several practical areas, including:
- Starting from a clear customer problem, so the bank can define what a good outcome looks like and where the assistant might fall short
- Gathering evidence that the assistant is accurate, relevant and handles uncertainty properly
- Keeping customers in control and guarding against hidden assumptions, overconfidence and over-reliance on the tool
- Assuring the whole system, including who owns the service, how the bank monitors it and how it tests changes before release
Monzo also backed an outcomes-based approach to regulating AI in finance. The bank said detailed rules tied to a specific model can date quickly, while broad principles alone can leave firms unsure what proportionate safeguards look like.
The FCA confirmed in September 2025 that it would not introduce AI-specific regulations.
The regulator selected Monzo for the first cohort of AI Live Testing, alongside Gain Credit, Homeprotect, NatWest, Santander, Scottish Widows and Snorkl. That first group of firms joined live testing in October 2025.
Participating firms receive support from the FCA’s regulatory team and Advai, a London-based specialist in automated AI assurance. Other first-cohort projects explored AI for debt resolution, financial advice, customer engagement and complaints handling.
The FCA named a second cohort in April 2026. The eight new firms include Barclays, Experian, Lloyds Banking Group and UBS.
That second group is testing AI for targeted investment support, consumer credit score insights, agentic payments, anti-money laundering detection and Know Your Customer checks.
Monzo said it will keep testing the savings assistant and continue sharing lessons with the FCA as it builds products for customers.
