FinTech Scotland has secured funding from the UK government to accelerate innovation in Scotland’s fintech space. All funding aims to advance research and innovation in financial regulation.
The funding comes following a successful bid by Glasgow City Region to be included in the UK government initiative to accelerate the growth of ‘high potential innovation clusters’ in Glasgow, Greater Manchester and the West Midlands. All Innovation Accelerator Programme projects will begin in the Spring of 2023.
In partnership with the universities of Strathclyde and Glasgow, the fintech community has plans to create a new collaborative centre of excellence: ‘The Financial Regulation Innovation Lab’.
The lab itself will focus on using new technologies to accelerate efficiencies, revolutionise risk management and shape future regulatory developments.
The Lab enables FinTech Scotland to deliver one of the strategic recommendations laid out in the FinTech Research & Innovation Roadmap, launched in March 2022 and aligns with the recently announced UK innovation initiative, the CFIT, formed in response to the HM Treasury FinTech Sector Review.
FinTech Scotland will work across the industry leading the development of the Lab, with initial actions focused on:
- A sandbox – testing and advancing fintech innovations that meet industry demand.
- A facility to develop new businesses with an accelerated path to commercial success.
- Industry-driven academic research, advancing the deployment of tech in finance.
- A technology-focused skills programme for risk and regulatory professionals.
- Researched, data-driven contributions helping advance financial regulation policy.
Shaping ‘jobs for the future’ and propelling ‘fintech ambition’
Nicola Anderson, CEO of FinTech Scotland, discussed the importance of obtaining government funding. Anderson said: “I am delighted to see the commitment and recognition from the UK government in the high-growth potential of fintech innovation in Glasgow. The Innovation Accelerator funding will help push this forward.
“The Financial Regulation Innovation Lab is a ground-breaking initiative. It brings together, industry partners, fintech entrepreneurs, universities, and regulators to revolutionise the future of financial regulation and risk management through technology and data. The outcomes will shape jobs for the future and propel our fintech ambition, here in Scotland and across the UK. “
Charlotte Crosswell OBE, chair at the Centre of Finance Innovation, and Technology (CFIT), also offered her views. Crosswell explained: “The development of the Innovation Lab is an exciting opportunity both for Glasgow and for the UK.
“We have significant potential across the UK to drive fintech innovation and realise our full fintech potential. Drawing on our regional strengths and bringing experts across the finance and technology ecosystem is key. This is our mission at CFIT, and we’re supporting FinTech Scotland as it continues to demonstrate its impact, identifying opportunities for fintech growth and working in collaboration to drive the Innovation Accelerator across the UK.”
The funding allocation to fintech in Glasgow demonstrates the national commitment to drive fintech innovation across the UK.