Simplifying Compliance with AI
Season 4, episode 2
Listen to the full episode here.
In this episode, we explore the role of Artificial Intelligence (AI) in streamlining compliance within the financial sector, showcasing the Financial Regulation Innovation Lab.
We discuss the future of financial compliance, enriched by AI’s capability to automate and innovate. This episode is for anyone interested in the intersection of technology, finance, and regulation, offering insights into the collaborative efforts shaping a more compliant and efficient financial landscape.
Guests:
- Antony Brookes – Head of UK Investment Compliance, abrdn
- Mark Cummins – Professor of Financial Technology at University of Strathclyde
- Joanne Seagrave – Head of Regulatory Affairs at Tesco Bank
Navigating the Tides of Regulatory Risk: Insights from Pinsent Masons’ April 2024 Edition
The April 2024 Edition of the Pinsent Masons’ Regulatory Risk Trends offers a deep dive into the current and emerging issues that are shaping the world of finance, legal compliance, and corporate governance. This comprehensive document, authored by leading experts in the field, serves as a very useful source of information for businesses, financial institutions, and legal professionals navigating the complex regulatory environment.
The report opens with thoughts from Jonathan Cavill, Partner at Pinsent Masons, who specialises in contentious regulatory and financial services disputes. His expertise sets the stage for an in-depth exploration of the regulatory challenges and opportunities that lie ahead.
Key takeaways
- Consumer Protection: The document highlights the Financial Conduct Authority’s (FCA) intensified focus on the fair treatment of customers, especially the vulnerable ones. With references to recent reviews and consultations, it stresses the importance of businesses aligning their practices with these standards.
- Fair Value and Insurance Sector Scrutiny: The FCA’s call for insurers to act upon the publication of the latest fair value data underscores a shift towards greater transparency and fairness in insurance pricing. The report examines the implications of these demands and offers strategies for compliance.
- Market Operations and Monetary Policy: Insights from Colin Read explore the Bank of England’s Sterling Monetary Framework (SMF) and its implications for market stability and liquidity. This section is crucial for understanding central bank reserves and the broader economic landscape.
- Advancements in Consumer Investments: Elizabeth Budd delves into the FCA’s strategy for consumer investments, emphasising the new Consumer Duty and its impact on financial advisers and investment firms. This represents a significant shift towards ensuring that consumer interests are at the heart of financial services.
- Innovation in Payment Systems: Andrew Barber’s commentary on the latest policy statements from the Bank of England provides a glimpse into how regulatory bodies are supporting payments innovation, particularly through the Real-Time Gross Settlement (RTGS) system. This is vital for fintech companies and traditional financial institutions alike.
- Fighting Financial Scams: The document doesn’t shy away from the darker side of finance, addressing the ongoing battle against scams. It presents a detailed analysis of recent cases and regulatory responses, offering valuable lessons and preventive strategies.
- Gender Equality: The Financial Services Compensation Scheme’s (FSCS) efforts in promoting gender equality within the financial sector are also covered. This initiative reflects a broader movement towards diversity and inclusion in finance, highlighting the societal values shaping regulatory agendas.
The Pinsent Masons’ April 2024 Edition of Regulatory Risk Trends is a roadmap for navigating the regulatory environment with confidence and foresight, giving you access to:
- Detailed analyses of regulatory developments and their implications for various sectors.
- Expert commentary from leading figures in law and finance.
- Strategic recommendations for staying ahead in a regulatory landscape marked by rapid change and increased scrutiny.
FinTech Scotland Showcases Scottish Innovation in New York
FinTech Scotland is participating in New York Tartan Week and New York FinTech Week, representing the dynamic Scottish fintech sector on the global stage.
Led by CEO Nicola Anderson, FinTech Scotland is accompanied by a select group of innovative Scottish fintech companies, including Terrapin, Tindeco, Grand Bequest, and Broker Insights. This delegation is organised in collaboration with the UK Department for Business and Trade (DBT) and aims to explore and establish transatlantic market opportunities.
The participation reaffirms FinTech Scotland’s commitment to fostering international collaboration and showcasing the Scottish fintech cluster’s strengths. The delegation’s presence in New York represents a significant opportunity to create ties between the Scottish and US financial services sectors, promoting cross-border innovation and business opportunities.
As part of the Tartan Week celebrations, DBT, FinTech Scotland and Scottish Financial Enterprise (SFE), hosted a reception on April 4th. The event was designed to celebrate and strengthen financial relationship between Scotland and the United States.
During New York FinTech Week, FinTech Scotland and the four accompanying fintech firms have the opportunity to engage in a series of strategic activities aimed at raising their international profile and exploring the US market. These include participating in reverse pitching sessions ”“ a unique opportunity where investors pitch to fintech companies ”“ roundtable discussions, meetings with investors and banks, and various speaking engagements.
Nicola Anderson, CEO of FinTech Scotland said:
“Our participation in Tartan Week and New York FinTech Week is a fantastic opportunity to highlight fintech innovations and expertise within the Scottish fintech cluster. We are excited to collaborate with our strategic partners PwC and the UK Department for Business and Trade to facilitate meaningful connections and explore new avenues for growth in the US market.”
UK Government Minister for Scotland John Lamont attended the FinTech reception as part of his visit to New York for Tartan Week.
He said:
The UK Government wants to harness the immense potential of our transatlantic partnership and encourage US businesses to explore the exciting possibilities Scotland offers in the FinTech sector.
It’s fantastic that four Scottish companies will be attending New York FinTech Week to showcase their dynamic and innovative work. By collaborating with our US partners, we can encourage growth to create more highly-skilled jobs and opportunities.’
Deputy Trade Commissioner North America, the UK’s Department for Business and Trade John Thompson added:
“Scotland’s vibrant and innovative fintech community primes Scottish companies for international success. Bolstered by Scotland’s 300-year legacy of financial services excellence and cutting-edge expertise in technologies like AI and data, these firms carry forward a tradition of trust and quality. This solid foundation positions emerging Scottish fintechs to confidently expand their client base here in the US and continue Scotland’s financial services legacy.”
Embracing Digital Transformation: Key Insights from Legado’s 2024 Private Client Experience Report
The legal sector is on the brink of a transformative shift, according to the latest findings from Scottish fintech company Legado. Their 2024 report, “The Private Client Experience, Legal Report,” unveils crucial insights into how private client solicitors and their clients interact, highlighting a compelling case for the adoption of digital solutions in the legal sector.
The Digital Demand in Legal Client Experience
The traditional modes of communication, predominantly email and post, remain the solicitors’ go-to methods. However, this seems to be out of sync with client expectations and needs. The report reveals that a staggering 60% of clients encounter challenges in their interactions with solicitors, signaling a clear demand for more streamlined and digital approaches. 92% of survey participants expressed the need for a secure digital portal, emphasising its potential to significantly enhance the quality of interaction between clients and legal professionals.
The Challenge of Change
Despite the unanimous use of email by solicitors, half of them find managing client communications challenging. This paradox underscores a broader issue within the sector: while there’s recognition of the need for digital transformation, the actual implementation of such solutions lags behind. Only a minority of law firms currently offer client digital portals, even though 90% of clients prefer this method of interaction.
The Path Forward
This gap between current practices and the potential for digital innovation presents an opportunity for significant improvement in how legal services are delivered. By embracing digital platforms, law firms can not only enhance client satisfaction but also achieve greater operational efficiency and security in document exchange and communication.
A Call to Action
Josif Grace, the founder and CEO of Legado, passionately advocates for this digital shift. He views the findings of the report not as a critique but as a blueprint for growth and advancement in the legal sector. According to Grace, the future of legal services will be determined by the industry’s willingness to adapt and innovate, meeting the evolving digital needs of clients in a secure and user-friendly manner.
Encompass Corporation Welcomes Neil Acworth as New CISO to Fortify Global Banking Trust
Encompass Corporation, a fintech based in Scotland and a leading global provider of real-time digital Know Your Customer (KYC) solutions, just announced the appointment of Neil Acworth as its Chief Information Security Officer (CISO). Acworth’s entry is a significant milestone for Encompass in its mission to provide gold-standard information security processes to global banking institutions.
Acworth brings to the table an impressive array of experiences, having navigated through the tech space with roles such as Chief Technical Officer (CTO) and Chief Information Officer (CIO), particularly within the Regulatory Technology (RegTech) sphere. His appointment is reinforcing Encompass’ capabilities in delivering seamless, data-focused processes crucial for the safety, compliance, and operational efficiency of financial institutions. This move is especially pertinent given the ever-evolving business and regulatory landscape where security remains a key concern across the financial services industry.
In his new role, Acworth will spearhead the information security team at Encompass, driving the company’s ongoing endeavors to embody and promote the highest standards in combating financial crime and fostering business growth. His leadership is expected to further solidify Encompass’ stature on the global stage as a beacon of trust and excellence in information security.
Neil Acworth, Chief Information Security Officer at”¯Encompass Corporation,”¯commented:
“I’m delighted to join an industry-leading business that is growing and strengthening its value every day. Information security is of the utmost importance to banks and financial institutions, and they need to see that we take it as seriously as they do. It’s clear that Encompass recognises this and is actively working to cement its place as a best-in-class partner.
“I’m excited to bring my leadership skills, perspective and technical expertise, gained from decades of experience, to this role and play my part in the business enhancing its reputation and success.”
Stuart Barnard, Vice President of Finance and Business Operations at”¯Encompass Corporation,”¯added:
“Compliance is at the heart of what we do, and hiring Neil as our new CISO brings this to life, in terms of how we operate internally and externally. For banks, we know security isn’t just about ticking a box, it’s business critical, and we are focused on being the proactive and trusted partner that our customers need.
“Neil has outstanding technical and business authority, gained from his vast industry experience. Neil‘s customer-focused approach also means that he is the ideal leader to help our customers operate most effectively within what is a fast-moving and pressured industry landscape, ensuring they feel safe with Encompass.”
Techscaler partners with FinTech Scotland to accel-erate sector growth
Techscaler, the Scottish Government’s tech startup support programme, and FinTech Scotland, the cluster body driving Scotland’s fintech innovation, announce a strategic partnership poised to drive forward Scotland’s fintech sector development. FinTech SMEs now employ more than 10,500 people across 226 enterprises in Scotland, with around 38% of fintechs having reached scale-up stage.
Nicola Anderson, CEO of FinTech Scotland, said:
“This collaboration is about getting behind Scotland scaling for tech, together. It underscores our joint dedication to cultivating innovation and showcasing the vibrant fintech community in Scotland. We look forward to bringing tangible benefits to our scaling fintech SMEs, and sharing our sector expertise with Techscaler founders, to build a robust and forward-thinking fintech cluster.”
FinTech Scotland’s affiliated scaling firms will now be able to access the comprehensive benefits offered by Techscaler membership, opening the door to an extensive network and support system of mentorship, educational courses, community events, and more, enhancing collaboration opportunities and fostering growth for fintech innovators.
Techscaler runs three main programmes – Startup First Steps, Startup Next Steps, and Reforge. Techscaler’s partnership with Reforge, the world’s leading career development platform for top-tier professionals in tech, brings access to Silicon Valley playbooks and best practices to founders in Scotland who are scaling their teams.
Yasmin Sulaiman, VP of Partnerships for CodeBase, said,
“Connecting the diverse parts of the tech ecosystem is a huge part of our job running Techscaler for the Scottish Government. When organisations like ours and FinTech Scotland come together to understand founders’ needs, we’re able to offer a much stronger suite of support and join up founders with the opportunities they’re looking for to grow. We’re looking forward to growing our partnership, and helping connect our community to FinTech Scotland’s expertise.”
Innovation Minister Richard Lochhead said:
“Our £42 million Techscaler network is already showcasing some of Scotland’s most promising start-ups. This partnership with FinTech Scotland is another example of how the Techscaler network is helping to galvanise our innovative, collaborative and inclusive tech community by sharing knowledge and supporting growth.”
Richard Lochhead added:
“Progress like this demonstrates Scotland’s ambition to become one of Europe’s leading start-up communities. We are setting an example and helping drive a fair and growing economy.”
Techscaler’s fintech-focused members will be introduced to the resources and opportunities provided by FinTech Scotland, bringing sector specific support to fintech founding teams. This collaboration ensures that Techscaler members operating in the fintech sector receive the most relevant support to their sector, enabling them to tap into a broader ecosystem and lean into finance-specific challenges.
To mark the initiation of the partnership, Techscaler and FinTech Scotland will host a Founder Roundtable next month to gather insights from fintechs, providing founders with the opportunity to engage directly with industry leaders and peers. The insights gathered from the roundtable will be instrumental in curating activities and support mechanisms that meet the fintech community’s needs. The roundtable event will take place at CodeBase in Edinburgh on Wednesday 3rd April at 10.30am after Unfiltered, CodeBase’s monthly open networking event.
Colin Hewitt, CEO and Co-founder of Float Cash Flow Forecasting, said:
“Being part of the CodeBase community through our journey with Float has provided us with a dynamic workspace and access to the right people which has played a pivotal role in shaping Float’s success. I’m excited about the partnership between Techscaler and Fintech Scotland, it signals an exciting era for Scotland’s fintech ecosystem, and a positive sign of the continued evolution of this vibrant community.”
Scotland’s commitment to fintech innovation is evident in its ten-year sector roadmap, targeting the creation of 30,000 jobs and an ambitious economic value increase of over 330%, surpassing £2bn by the end of the decade. This strategic vision aligns with the country’s focus on four key segments: open finance data, climate finance, payments and transactions, and financial regulation.
Through the partnership, Techscaler will lend its expertise to initiatives such as the Financial Regulation Innovation Lab (FRIL), launched by FinTech Scotland in December in partnership with mutual partners the University of Strathclyde and University of Glasgow. This initiative seeks to advance understanding and adoption of new and emerging technologies in fintech through industry-led innovation challenges, skills and education programmes, workshops, roundtables, conferences, and trade missions.
Techscaler has forged multiple partnerships across and beyond the Scottish tech ecosystem since it has been operational, including with the Chief Scientist Office’s NHS Innovation Hubs, govtech funding challenge programme CivTech, and STAC, the Internet of Things accelerator.
Fintech – a force for good
Season 4, episode 1
Listen to the full episode here.
Episode recording with Fintech Australia.
Fintech has emerged as a transformative force in the financial sector, offering innovative solutions that not only enhance financial services but also address broader societal issues, including environmental sustainability, customer vulnerability, and overall financial well-being.
Those objectives are heavily featured in the Research & Innovation Roadmap that we published 2 years ago.
In Scotland, we have an important number of fintechs addressing those challenges. In fact, the majority of Scottish fintechs are fintech for good.
Today we’ll take some time to consider how those organisations are driving positive changes.
Guests:
Ren Hooi, Founder and CEO at Lightning Reach
Robin Peters, Co-founder and CEO at Snugg
Sheila Hogan, Founder and CEO at Biscuit Tin
Lloyds Banking Group’s “Launch 2024” Innovation Call Is Live
We’re thrilled to announce the fourth edition of Lloyds Banking Group’s innovation programme, “Launch 2024.” This initiative is opened for application for fintech innovators across the globe.
What Makes Launch 2024 Unique?
“Launch 2024” is not just another innovation call; it’s a 5-month collaborative journey designed to accelerate fintech solutions. This programme offers access to subject matter experts and business masterclasses, enabling rapid experimentation and development.
Participants will gain the opportunity to work closely with Lloyds Banking Group’s subject matter experts, refining and testing their propositions. At the end of this programme, fintechs will pitch their solutions to challenge sponsors and senior leaders, potentially leading to a proof of concept partnership.
Who Can Apply?
Lloyds Banking Group are calling on ambitious companies and individuals looking to tackle one of their five strategic challenges. Startups or more established companies are welcomed if their vision aligns with this year’s challenges.
In line with Lloyds Banking Group’s commitment to diversity and inclusion, they especially encourage applications from women-led teams and businesses founded by individuals of Black, Asian, and Minority Ethnic heritage.
Launch 2024 Challenges
- Helping customers through their life moments
- Helping Customers with their everyday lives
- Optimising customer experience across channels
- Leveraging technology to enhance internal risks and controls
- Increase customer understanding of their finances through gamification
How to apply?
This is a great opportunity for fintechs looking to make an impact, be recognised as a leader in fintech innovation, and potentially collaborate with one of the UK’s leading banking groups.
17 fintechs selected for the Financial Regulation Innovation Lab’s first innovation call
The Financial Regulation Innovation Lab, in collaboration with the University of Strathclyde and The University of Glasgow, has selected the firms that will take part in its first innovation call centred around “Simplifying Compliance through AI and Emerging Technologies,”. This call aims to showcase how technology can meet UK and global regulatory requirements, potentially setting a new benchmark for future advancements in the industry.
The mission
This initiative will not only look at advancing innovation but also at highlighting the significant role of artificial intelligence and emerging technologies in simplifying and enhancing compliance processes within the financial sector. By bringing together academia and some of the UK’s leading financial institutions, such as Morgan Stanley, Tesco Bank, Virgin Money, abrdn, and Deloitte, the programme will offer unparalleled mentorship, insights, and real-world case studies to the participants.
The selected fintechs
17 companies have been meticulously selected to participate in this programme. These companies, established in the UK, Canada, and Singapore, represent the cutting edge of fintech innovation:
Aifluent
Amiqus
Argus Pro LLP
AsiaVerify
Auquan
Change Gap Ltd
Datawhisper
DX Compliance
Fairly AI
Financial Crime Intelligence
First Derivative
HAELO
International Data Flows
Legal-Pythia
Level E Research
Talan UK
Pytilia
Next steps
These selected fintech companies will gather in Glasgow on the 12th of March, where they will delve into use cases presented by the supporting financial institutions. This gathering will not only provide them with a unique opportunity to learn directly from leading experts in the field but also to hear about the latest developments in AI from university scholars. The discussion will span best practices for maximising the benefits of innovation calls and strategies for scaling businesses for success
The collaboration between these fintech innovators, academia, and some of the largest financial institutions in the UK will not only demonstrate the potential of AI and emerging technologies to revolutionise regulatory compliance but also help inform the future of financial innovation.
The FRIL project is funded by the Glasgow City Region Innovation Accelerator programme. Led by Innovate UK on behalf of UK Research and Innovation, the pilot Innovation Accelerator programme is investing £100m in 26 transformative R&D projects to accelerate the growth of three high-potential innovation clusters ”“ Glasgow City Region, Greater Manchester and West Midlands. Supporting the UK Government’s levelling-up agenda, this is a new model of R&D decision making that empowers local leaders to harness innovation in support of regional economic growth and help attract private R&D investment and develop future technologies.
Announcing a new Digital Transformation micro-credential
The Financial Regulation Innovation Lab (FRIL) introduces a new opportunity for professionals to stay ahead in the rapidly evolving finance sector. Powered by the University of Strathclyde, this first micro-credential, “Digital Transformation, focuses on risk and compliance. FRIL aims to pioneer a path for industry practitioners towards mastering digital transformation strategies that cater specifically to the nuances of risk and compliance in finance.
Empowering Through Education
The digital transformation course is designed to arm participants with theoretical knowledge and practical insights into how technological advancements, especially artificial intelligence (AI), are revolutionising risk management and compliance practices. Over six weeks, this course offers a unique blend of self-directed online learning and an immersive one-day on-campus session, providing a comprehensive understanding of digital strategies that can significantly enhance regulatory and compliance processes.
Course Objectives
Participants will explore digital transformation, exploring its implications for the finance industry with a keen focus on risk and compliance. The curriculum is tailored to:
- Highlight the current and potential impacts of digital technologies on the finance sector.
- Equip professionals with the knowledge to harness these technologies for improving compliance efficiency and risk mitigation.
- Foster a strategic mindset, enabling participants to devise and implement digital transformation initiatives within their organisations.
A Unique Learning Experience
The course is structured to cater to the busy schedules of finance professionals, combining the flexibility of online learning with the depth of in-person engagement. Through this dual approach, learners can explore digital transformation concepts at their own pace, followed by a day of intensive, hands-on learning on campus. This format is designed to reinforce online learning outcomes, encourage networking among peers, and facilitate direct interaction with leading experts in digital finance transformation.
Secure Your Place
With a limited number of fully funded places available, FRIL encourages interested individuals to express their interest at the earliest convenience.
For further information, visit Digital Transformation or contact The University of Strathclyde’s skills team today at sbs-upskilling@strath.ac.uk.