“The Future is Unwritten”: Stephen Ingledew OBE on the Promise of FinTech
Stephen Ingledew OBE, Chair of FinTech Scotland, likens fintech to the new punk rock scene of the 1970s. “What punk rock did was allow anyone who wanted to form a band, play an instrument, and just get up there and be part of it. It allowed more women, for example, into music than any other genre,” he explained. “Fintech is similarly challenging the traditional ways in which innovation is done.”
We took the opportunity to interview Stephen Ingledew on the occasion of him being awarded an OBE for services to the UK fintech sector and asked him the following questions:
Congratulations on your OBE! Can you briefly describe your FinTech journey and the innovations that led to this recognition?
I suppose innovation has been in my blood for just under 40 years. I decided to come into the financial world to change it for the better because, for me, innovation is a means to improve the state of affairs for people, including financial wellness. From 2018, I was asked to set up and lead Fintech Scotland as a new organisation. This allowed me to use my experience of working in big companies, like Barclays, as well as small, innovative financial companies, and bring all these experts together to develop a cluster focused on genuine innovation using new technologies – which is precisely what Fintech is. And while fintech itself is not new, what has changed in the last 10 years or so is, firstly, an acceleration of the type of technology that can be applied, and secondly, the mindset of focusing on technology as a way of bringing about better outcomes for individuals, businesses and communities.
What makes fintech in Scotland stand out?
At FinTech Scotland, we are focused on the actual impact of the outcomes of innovation on consumers, whether that’s around issues like financial inclusion, financial crime or operational improvements for large financial firms. The FinTech Scotland cluster is about bringing people together who would not naturally do so, to drive better outcomes. Diversity is the key ingredient here. Scotland, albeit small, has a heritage of innovation, and brings together major players, bigger and smaller enterprises, and great universities. What’s crucial to our success is, rather than a narrow focus on Scotland, we see ourselves as part of the broader UK ecosystem. I happen to be one of the founders of the UK FinTech national network and believe strongly, therefore, in the value of working in collaboration with our other regional fintech groups, rather than in competition.
What emerging trends and technologies do you think will have the most significant impact on the financial sector, both in Scotland and beyond?
What’s most exciting is the way that the cluster approach allows us to cut through the financial world into horizontal sectors of other parts of the economy. So, for example, fintech can work with SpaceTech, HealthTech and ClimateTech. I have a little saying, that fintech is far too important to leave up to the financial services industry on its own. After 40 years in the industry, I can say that we’ve not always got things right. To improve on this we need more diverse minds around the table, for instance, consumer groups impacted by the innovation. We need to listen to the users themselves, not those who think they know what’s best.
Winning an OBE is a significant achievement. How do you plan to leverage this recognition to inspire and contribute to the fintech community in Scotland?
Hopefully it will encourage more people who wouldn’t normally have thought of fintech to actually reach out and get involved. Of course, I’m very humbled by the recognition, but it wouldn’t have happened if it wasn’t for the enablement of the three Teams’: the wonderful team at FinTech Scotland; the Scottish fintech cluster team (comprised of entrepreneurs, established industry players, academics, economic agencies like Scottish Enterprise, and investor and consumer groups); and the UK team including industry, regional fintech associations, Innovate UK, the FCA, the Centre for Finance Innovation and Technology (CFIT) and Innovate Finance amongst others. This is a great example of the whole being greater than the parts. By joining up with the UK as a whole we can recognise bigger ambitions and achieve more success for the Scottish cluster as a whole.
Can you share a memorable success story or milestone in your fintech career that you’re proud of and exemplifies your contributions to fintech?
FinTech Scotland winning the silver cluster excellent accreditation from the European Secretariat for Cluster Accreditation was an important recognition that we’re on the right track to what we are trying to achieve. Alongside that, we’re hosting the third annual UK FinTech Symposium this November, which engages the whole of the UK ecosystem, including UK government ministers, the FCA, the City of London, as well as all of the regional fintech groups, to share examples of best practice and how to build on that as a family
Personally, my motivation has come from meeting so many brilliant entrepreneurs who are inspired about improving some aspects of the financial world, whether that’s in terms of how people manage their money, through to payments mechanisms or handling new regulations. With the right mindset and the right technology, I believe things can be made better.
Joe Strummer, lead singer of the Clash, once said, “The future is unwritten”, because it is up to each one of us to break out and write our own future. Ultimately, there will always be room for improvement and, therefore, always room for innovation – and that will always be fintech, even if it is called punk rock.
Special Scotland Fintech Festival 2023 – Nicola Anderson, CEO at FinTech Scotland
Season 3, episode 10
Listen to the full episode here.
Scotland Fintech Festival took place between the 21st of September and the 12th of October. With over 50 events the festival was a real success this time again.
During the launch event, the Fintech Summit, we recorded special episodes in collaboration with collaboration platform Findr.
In this episode we speak with Nicola Anderson, CEO at Fintech Scotland about the festival itself as well as initiatives that are underway, delivering the recommendations of the UK Research & Innovation Roadmap.
docStribute® and Chorley Building Society set to transform member communications
Chorley Building Society has teamed up with fintech docStribute on their journey towards digitalisation. This strategic partnership represents Chorley Building Society’s strong commitment to operational efficiency, elevated member engagement, and adherence to regulatory compliance standards.
The shift towards digitalisation is a crucial step for building societies in the modern age, and Chorley Building Society is setting a great example. By partnering with docStribute, they are not only aligning themselves with the evolving financial landscape but also taking active steps to reduce their environmental footprint.
Recent data from UK local government sources indicates that paper and cardboard constitute a staggering 20% of all waste produced in the country. Through the adoption of docStribute’s cutting-edge document distribution solutions, Chorley Building Society is on a mission to lower its paper consumption and carbon emissions whilst optimising their operational efficiency.
Chris Ansara, the CEO of docStribute, highlights the profound impact this partnership will have on digital transformation and customer relationships, all of which will ultimately benefit Chorley’s members. The solutions offered by docStribute will play an important role in achieving these objectives, promising lasting, positive change for Chorley’s members.
Kim Roby, Customer Services Director at Chorley Building Society, insists on the fact that their primary objective is to ensure that their
members receive nothing short of outstanding service. Their commitment extends to providing an exceptional member experience that adheres to regulatory standards and contributes to environmental sustainability. The partnership with docStribute aligns perfectly with this vision, as it will streamline member communication, enhance consumer comprehension, and make it simpler for members to engage with the society.
One of the standout features of this new partnership is the significant improvement in Chorley Building Society’s documentation delivery processes. Through this collaboration, members will have instant and secure digital access to information and communications whenever they need them. This level of convenience will transform the way members interact with the society, making their experience more personalised, timely, and tailored to their needs. In essence, this partnership empowers Chorley Building Society to deliver an elevated standard of member engagement.
Aveni Launches Innovative Consumer Duty Board Report for Data Compliance Assurance
Scottish fintech Aveni, has unveiled its innovative Consumer Duty Board Report. This report template offers a robust solution to reassure board members that their data obligations are being diligently met. As the financial landscape evolves with the advent of data-first regulation and the increasing demands of quality and risk assurance stipulated by Consumer Duty, the responsibility placed on boards has grown exponentially. Aveni’s template is a critical step in addressing this challenge.
The Consumer Duty Board Report template is a tool designed to help companies create reports that are not only board-ready but also regulator-friendly. It provides a clear roadmap for evaluating data requirements within four key areas: Product and Service, Price and Value, Consumer Understanding, and Consumer Support. By scrutinising these dimensions, organisations can effectively determine whether they are meeting the Consumer Duty mandate.
The template goes beyond guidance; it equips users with the necessary metrics to measure, the data required, and the actionable insights that stem from this data. Additionally, it offers practical examples of technologies that can be leveraged to automate reporting and facilitate access to, as well as analysis of, crucial data. By adopting this comprehensive approach, companies can demonstrate their commitment to fulfilling Consumer Duty Key Performance Indicators (KPIs) and reassure regulatory bodies that proactive risk management is firmly in place at the board level.
Joseph Twigg, CEO of Aveni, emphasised the significance of the Consumer Duty initiative, stating,
“Consumer Duty is well underway in its implementation phase, and the Financial Conduct Authority (FCA) is demonstrating its commitment to enforcing it by taking action against non-compliant banks and building societies. The core expectation of data-backed evidence is a shared responsibility that extends throughout the organization, all the way up to the board level. Boards must possess a deep understanding of the factors affecting consumers and the metrics to track potential risks, as well as the corrective actions taken to address issues before they escalate. Our report template has been meticulously designed to reassure boards that Consumer Duty-related risks are being diligently assessed and that relevant data is being disseminated across the organization to ensure continuous improvement.”
Twigg continued, “When we founded Aveni, our extensive experience in financial services strategy and planning was central to our mission to provide solutions that address the pain points faced by executives and boards, especially from a regulatory perspective. We are now collaborating with some of the largest banks, equity release, and advisory firms to deliver on this mission.”
For those interested in adopting this transformative template, the Consumer Duty Board Report template is available here.
Scotland FinTech Festival Wrap-Up: Unlocking answers through comprehensive understanding
Following the conclusion of this year’s successful Scotland Fintech Festival, we spoke to Nicola Anderson, CEO of FinTech Scotland, to find out what her key takeaways of the festival were, and how she sees it demonstrating the importance of the FinTech Research and Innovation Roadmap’ in guiding the industry’s priorities.
Nicola Anderson, CEO of FinTech Scotland, is of the firm view that fintech is supremely poised to solve some of the most pressing challenges we have in society today, from driving change on the climate agenda, to embracing the opportunity that fintech can provide for women and financial inclusion in general. “The breadth and quality of contributions across the full range of festival events has been amazing,” Anderson comments. “The purpose of the Scotland Fintech Festival has always been about definitively showing the vibrancy, connection, collaboration, and the inclusion that we see fintech presenting as an opportunity for the economy in Scotland and across the UK – and I think the festival has demonstrated that.”
Anderson is encouraged that the festival has promoted the interests of fintechs based in Scotland by helping reignite relationships and networks, allowing participants to hear different perspectives and views. “If you look at some of the speakers and across the events, they are from both UK-wide and global institutions. This shows how connected the Scottish fintech cluster continues to be across the world, and how interested people are in coming to hear what we have to say,” she points out. The festival aims to shine a light on fintech innovation and the opportunity that fintech presents for Scotland’s economy. This sentiment was further strengthened by the launch of a new £150 million Investment Fund for Scotland by the British Business Bank to help unlock additional funding to help smaller businesses to prosper and thrive.
“We’ve experienced purposeful action plans coming from the meetings and discussions across the Fintech Festival,” says Anderson. She provides a couple of examples, including the Scottish government’s drive behind an action plan that will enable fintech for exports. In addition, the focus of discussions on the impact of data and AI on the future of finance and climate. This demonstrates that the FinTech Research and Innovation Roadmap’ is the right vehicle to advance innovation in the financial services sector. It calls on the importance of data, AI and technologies to drive change and innovation.
Anderson also feels that the UK is starting to realise the benefits from some of the recommendations outlined in the Kalifa Review. This is shown through the relationships FinTech Scotland has created with the Centre for Finance, Innovation and Technology (CFIT) around work on finance data, as well as the team behind the UK FinTech Growth Fund involved and participating at the Festival showcasing investment opportunities. “It emphasises how important it is to connect the regions as per the Kalifa Review,” she notes.
What should the Scottish FinTech sector focus on next? “We have an opportunity to drive growth by focusing on those fintechs that are starting to scale,” she underlines. “We also need to focus on continuing to build relationships across the financial services ecosystem and cluster towards an inclusive environment that allows participation and collaboration between big and small entities, as well as connecting internal experts and inviting international perspectives to help us develop and grow.” In fact, there was great international representation across the festival involving delegations from China, as well as sessions focusing on the markets in the US.
“This year’s festival was a great success, and it underlines why I continue to be inspired to work at FinTech Scotland,” she concluded. “It’s about business growth, problem solving, collaboration, and innovation with purposeful intent. And most importantly, it’s about driving responsible change and outcomes that will serve society, and the future economy.”
Scotcoin Partners with Blockraise: A Major Leap in its Web3 Journey
Scottish fintech Scotcoin has taken an important step forward in its journey towards accessibility and impact. The Scottish cryptocurrency has appointed Blockraise, a Zurich-based Web3 venture accelerator, as its strategic partner to guide its expansion and listing in the global cryptocurrency market. This move is set to open up new possibilities for the project and bring ethical cryptocurrency into the mainstream.
The Role of Blockraise
Blockraise will play a pivotal role in making Scotcoin accessible to a global audience. The Zurich-based firm will provide valuable guidance to Scotcoin in several key areas, including liquidity strategy, community expansion, and tokenomics design. This collaboration with Blockraise is a significant step toward the project’s listing of tokens in the coming months.
A Vision for Scotcoin
Scotcoin’s vision extends beyond just being another cryptocurrency. The project seeks to create a vast ecosystem by forging partnerships with third sector organisations and private sector businesses willing to accept Scotcoin in exchange for a wide range of goods and services. Initially focusing on essentials like food, clothing, and shelter, this approach could have a profound impact on communities and individuals alike.
For instance, consider a clothing shop with unsold garments that would typically go to waste. With Scotcoin, a charity can purchase these items, providing a sustainable solution for both the business and the charitable organisation. This innovative approach could revolutionise how we think about currency and its impact on our society.
Opening Doors to More Participants
By listing Scotcoin on cryptocurrency exchanges, the project aims to increase its accessibility to a broader audience. The Scotcoin Project’s marketing and treasury division will provide financial support and regulate the distribution of tokens to ensure responsible and controlled growth.
Accessibility Through Scotscan.io App
Scotcoin offers a user-friendly solution for its community. Holders can easily exchange Scotcoin using the Scotscan.io app, available for download on Google Play and Apple’s App Store. This feature simplifies the process of transacting with the cryptocurrency and furthers the project’s goal of inclusivity.
A Promising Future for Scotcoin
The appointment of Blockraise as a Web3 partner marks an exciting and promising chapter in Scotcoin’s journey. Temple Melville, CEO of The Scotcoin Project CIC, is optimistic about the future. He stated,
“Appointing Blockraise is the next major step in our strategy to expand the Scotcoin community. The firm is well respected in the global cryptocurrency space, and we look forward to working with the team on this next phase of Scotcoin’s development, bringing the token to a much wider audience and helping to provide food, clothing, and shelter to those who need it.”
Alba Bank Partners with Mambu to Revolutionise SME Banking
Alba Bank just announced its strategic partnership with Mambu, a leading cloud banking platform. This collaboration is set to redefine how SMEs access lending services and manage their retail and business deposits.
Supporting UK SMEs
Founded by Scottish entrepreneur Jim McColl in 2018, Alba Bank was born out of a vision to bridge the growing gap in financial services for small and medium-sized enterprises (SMEs) in the UK. Based in Glasgow, the Scottish fintech has been developing new solutions to provide commercial finance to UK SMEs that have long felt underserved by traditional banking institutions.
Embracing the Future with Mambu’s Cloud Banking Platform
Alba Bank’s partnership with Mambu represents a significant move towards achieving its mission. By harnessing the power of Mambu’s cloud banking platform, Alba Bank will adopt a “composable approach” that promises to revolutionise the way it serves SMEs. This approach empowers the bank with greater agility and speed to market, a much-needed change for SMEs striving for financial support in an ever-evolving business landscape.
Addressing the Funding Gap
A report from Mambo shows that over the past five years, a staggering 58% of UK SMEs have faced have been unable to secure adequate funding to meet their business needs. Many SMEs are struggling to stay afloat or seize growth opportunities.
The report highlights the critical importance of impeccable service in the eyes of SMEs. 93% of them would contemplate switching lenders if a competitor offered a superior service. This is why financial institutions like Alba Bank need to deliver not just funding but also a customer-centric experience that SMEs truly deserve.
Nick Lawler, Market Director, Northern Europe at Mambu, says:
“Now more than ever, the availability of finance is key to the success of all SMEs. SME pain points need to be properly acknowledged by banks, as success rates for loan applications are 20% lower than for large enterprises. By pivoting to Mambu, along with a growing number of neobanks in the UK, Alba is in good stead as it continues to transform this sector of banking, supporting small and medium-sized businesses to reach their potential. We look forward to working with Alba as it supports direct lending to SMEs and fuels economic growth in Scotland and the wider UK region.”
Sandeep Kadam, Chief Technology Officer at Alba Bank adds:
“We’re excited to work with Mambu and fully embrace a cloud-first approach. Our partnership will enable us to build our products quickly and adapt to ever-changing market demands. At a time when SMEs are being underserved by traditional lenders, speed to market and agility are both crucial. Mambu’s ability to offer both will enable Alba to build a great banking experience for our customers.”
Navigating the Future: The UK’s Competitive Edge in Fintech Regulation and Innovation
“The UK has a strong competitive advantage in areas like cybersecurity, privacy and, increasingly, artificial intelligence. A lot of work, however, remains to be done. This is not an automatic process by any means,” outlines Dr Devraj Basu, Senior Lecturer in Finance in the Accounting and Finance department at the Strathclyde Business School. Basu helped set up the RegTech Forum which brings together industry, academia and government to help understand the fast moving RegTech landscape and how Scotland and the UK can position themselves to become leading global players.
“While the UK has well established strengths, it needs to pull together all these very different areas by creating an ecosystem solution,” he continues. Basu feels that if the UK provides a proper regulatory framework in the context of technology it will provide a greater impetus in unlocking innovation. A stable regulatory framework is also needed to adapt to technological change to ensure it’s fit for consumers – AI being a prime example. But the UK needs to simultaneously join up with international best practice as well. “These elements require a deep understanding of all the issues, as well as an aspect of agility to bring together all the different stakeholders,” he says.
Regarding the appetite of UK regulators towards the development of overarching digital public infrastructures (such as the so-called India Stack’ built on Aadhaar, India’s digital ID system), Basu believes that the UK can learn from establishing digital identities, preferably through the creation of an overarching framework for privacy regulations. However, the parallels stop there. This is because the UK would, unlike India, have to tackle its legacy technology issues. Further, the UK’s Financial Conduct Authority (FCA) can only play a limited role in transforming legacy infrastructure because rather than dishing out prescriptive directions to industry, the FCA is a principles-based regulator which can only outline overarching maxims.
In terms of innovating financial regulation itself, Basu feels that the UK has done the right thing by introducing regulatory sandboxes. Moreover, he feels strongly that the FCA should start looking at the costs that regulations impose on businesses and how they can be minimised. This could be achieved by implementing a by design’ philosophy by providing either high-level roadmaps that minimise cost or interactive processes that lead to better regulation. “One way of being innovative is if the regulator could convince organisations that the adoption of new regulations would actually improve products or sales. One thing that’s come out of our RegTech Forum is this notion of the by design’ philosophy, which takes a proactive view on regulation, which in turn encourages innovation,” Basu explains. “Ideally a regulator should be a body that guides businesses through a process and helps them get better.”
Amiqus Wins Legal Technology Award at Scottish Legal Awards 2023 and Gives Back to Community
Scottish fintech Amiqus just won the 20th annual Scottish Legal Awards. The company was awarded the Legal Technology Award for 2023, marking a significant milestone in its journey of innovation and growth.
Amiqus, known for its commitment to innovation and purposeful growth, has not only achieved recognition for its technological developments but also demonstrated its dedication to giving back to the community. To celebrate this remarkable achievement, Amiqus has pledged to donate £1,000 for every new account opened throughout the month of October. These funds will be directed towards supporting the Scottish Refugee Council, a charity devoted to aiding asylum seekers and refugees and helping them integrate into Scottish society.
Scaling Success and Impact
Amiqus has experienced a massive growth in recent years, solidifying its position as a leading player in the legal technology landscape. The company has forged partnerships with nine out of the top ten biggest Scottish law firms, as well as over 500 firms across various sectors throughout the UK. This expansive reach highlights Amiqus’s ability to provide valuable solutions to a diverse range of clients.
This growth story received national recognition in 2022 when Deloitte acknowledged Amiqus as the fastest-growing tech company in Scotland. Amiqus achieved this status by delivering nearly 2 million checks to facilitate compliance processes, enabling individuals to move homes, secure new jobs, and access regulated products and services online seamlessly.
A Testament to Excellence
Gregor Angus, Senior Business Development Manager at Amiqus, expressed his delight at winning the prestigious award, saying,
“The Scottish Legal Awards recognise and celebrate the achievements of those working in and supporting the legal sector. We’re delighted to have won this award, particularly considering the scale of and the respect we have for the other finalists. This recognition from a panel of independent judges is fantastic and is a testament to the hard work and effort of everyone across our teams at Amiqus.”
A Commitment to the Legal Profession
As Amiqus continues to expand its influence across various sectors and countries, the company remains deeply committed to investing in and supporting the legal profession. This commitment is rooted in Amiqus’s early adopting client base, many of whom are legal professionals. The company has a longstanding partnership with the Law Society of Scotland, reinforcing its dedication to helping firms of all sizes meet their regulatory obligations efficiently.
Amiqus’s win at the Scottish Legal Awards 2023 not only recognises its exceptional achievements in the legal technology sector but also underscores its commitment to making a positive impact on the community. By donating to the Scottish Refugee Council, Amiqus is not only celebrating its success but also contributing to the well-being of those in need. As the company continues to grow, it remains focused on supporting the legal profession and driving innovation in the field of legal technology.
Boosting Scottish Small Businesses: The Launch of the £150 Million Investment Fund
The British Business Bank is launching a brand-new £150 million Investment Fund for Scotland today, October 5th. This initiative will provide a significant financial boost, unlocking opportunities for smaller enterprises to prosper and thrive.
Unlocking New Avenues for Small Businesses:
The Investment Fund for Scotland is designed to foster sustainable economic growth by offering crucial support to both new and expanding businesses throughout the entire country. It aims to accomplish this by tailoring investment strategies to meet the unique needs of these enterprises. The fund offers a diverse array of financial options, including loans ranging from £25,000 to £2 million and equity investments up to £5 million. This wide spectrum of financial support is intended to help small and medium-sized businesses initiate operations, scale up their activities, or maintain a competitive edge in their respective industries.
A UK Government-Backed Initiative:
One of the most notable aspects of the Bank’s Investment Fund for Scotland is that it marks the first-ever UK government-backed investment fund dedicated solely to supporting smaller businesses in Scotland. This landmark move is set to significantly enhance the availability and variety of early-stage finance options, extending a lifeline to firms that might otherwise struggle to secure investment.
Supporting Diverse Business Endeavors:
The fund’s primary goal is to support businesses in a multitude of ways, including expansion, innovation in products or services, the development of new processes, skill enhancement, and the acquisition of essential capital equipment. This comprehensive approach shows the fund’s commitment to fostering holistic growth and development within Scotland’s small business ecosystem.
Expert Fund Management:
To ensure the efficient allocation of funds and expert guidance, the British Business Bank has appointed three trusted fund managers:
- DSL Business Finance: Responsible for managing smaller loans ranging from £25,000 to £100,000.
- The FSE Group: Tasked with overseeing larger loans in the range of £100,000 to £2 million.
- Maven Capital Partners: Managing equity investments of up to £5 million.
These experienced fund managers bring a wealth of knowledge and expertise to the table, further strengthening the fund’s potential to drive positive outcomes for small businesses in Scotland.
Louis Taylor, Chief Executive of the British Business Bank, said: “
With this fund for Scottish businesses, we hope to open the doors to new opportunities for a range of smaller firms looking to get started, grow, and develop across different sectors. We know that access to finance is a key concern for small businesses and are committed to ensuring that founders from all over the country have the same prospects in terms of finance, no matter where they are based.
“Scotland is a nation of entrepreneurs and innovators and recent success stories from spin-outs and early-stage businesses show that there is huge economic potential. We want to create local opportunities and generate an impact that spans beyond the fund, helping to boost productivity, innovation and employment.”
Scottish Secretary Alister Jack said:
“It’s great news that the British Business Bank is launching its new £150 million Investment Fund for Scotland. This funding boost will be hugely important in giving smaller Scottish businesses the investment they need to grow. Scotland has some fantastic business success stories, and this new, additional fund will help create even more of them.”
Following today’s launch, the British Business Bank will be holding a series of information roadshows aimed at people working in the small business finance ecosystem including enterprise agencies, advisers, accountants and more. The first of these will be held in Inverness on 31 October with the second in Edinburgh on 1 November. More towns and cities will be covered in the new year and an online version of the session will also take place on 7 November.
To find out more and apply for funding, visit: www.investmentfundscotland.co.uk