The Evolution from Open Banking to Open Finance
Bryn Coulthard is the Chief Product and Technology Officer at Smart Data Foundry, coming originally from a background in banking technology and product. The goal of the Smart Data Foundry is to safely unlock the power of financial data to provide huge benefits to society and inspire innovation by delivering economic, social and environmental benefits for everyone.​
As the UK’s journey progresses from Open Banking to Open Finance, Coulthard stands by the need for the development and evolution of standards. Whilst the UK mandated that providers deliver against API standards, Europe’s PSD2 approach decreed that banks needed to provide APIs but did not prescribe what these should look like. Today, as a result, we can see the level of adoption of Open Banking in the UK is much higher as opposed to Europe, due to the EU’s large array of differing standards. Such a myriad of standards means both fintechs and aggregators have to now build and develop complicated solutions to handle these multiple APIs.
With ever-increasing complexity in the global Open Finance standards landscape, Smart Data Foundry maintains a Standards Library to help financial institutions and innovators quickly and easily assess technical standards adopted by a geography or financial system. “We look at Open Banking and Open Finance standards across the globe, and we maintain and update those standards as they evolve,” explains Coulthard.
Coulthard is firmly of the view that standards need to be enhanced to be much more prescriptive about how APIs perform in terms of performance and availability. While in the past the UK was certainly a leader in this space, we’re now starting to see other countries learning from and building upon what’s been achieved in the UK. For example, Australia is more advanced in driving wider value through their core Consumer Data Right standards, Brazil has begun to really embrace Open Finance, and some Middle Eastern countries are beginning to push some quite strong Open Banking standards. “What we’re seeing internationally is that people have gone beyond the UK’s position and are now looking at ways to build on what we did and bring things to the next level. We need to learn from that as well,” he emphasises.
Coulthard strongly believes that Open Finance provides an opportunity to help people through their journey by demystifying finance so that people will make better informed decisions. It can help people retire, build new debt management, provide SMEs with better access to finance, or gig economy workers with savings or pensions programmes. “Open Banking has been around for the past six years, and it has been a real success. I just think it took time to get going,” he says. He warns against people getting too excited, however, about Open Banking or Open Finance as they are simply a means to an end. People should actually get excited about the value that increases the type of propositions and offerings.”
Opening Data Responsibly
Kent Mackenzie leads Deloitte’s Risk Analytics practice and has spent over 12 years in a range of financial services roles. With a passion for FinTech, data and advanced analytics, Kent has worked with local, national and international clients to develop tech and data solutions to manage financial crime, regulatory compliance, credit risk, and collections & recoveries.
“Data, quite frankly, should be considered as the lifeblood of any form of innovation and technological development,” says Mackenzie. “It’s very pertinent in our industry, financial services, that all products and advice for consumers require a hefty analysis of data; either on a personal level based on likes, preferences, hopes, dreams and desires, or with an overlay on those products of the broader population’s needs.”
In Mackenzie’s mind, having open access to data is what really helps innovation advance quickly, specifically in financial services, because it helps provide specific information on the types of products and services that can be offered. “If we can democratise data in this space, we can open up financial services to a variety of communities that perhaps haven’t in the past had the privilege of a financial product or service,” he explains. “It can help us to educate those that perhaps need a bit more help in understanding financial products.”
Before we get to this point, however, we need to rectify the opposing forces between the desire and ambition from organisations, regulators and innovators, to democratise data and create an open playing field, versus an anxiety around data privacy, respect of data and regulatory access to data. Mackenzie maintains that while we recognise the need to provide access, we need to do so respectfully and within the confines of respecting privacy, data integrity and bias. Over the past five years, he believes regulators within the UK have been doing a great job of opening up safe sandboxes, and credits the open data movements that have created anonymised data that is meaningful and can be accessed safely. He underscores that all this needs to be done in a non-competitive manner. “There’s a higher calling here to create these types of safe spaces to play,” says Mackenzie.
He believes the next incarnation of open data is eventually about providing a complete life-view of how one’s finances may be structured and how people could be guided and remain financially literate along their journey. This chain of events will prompt major innovations within the traditional financial services sphere. For example, real estate businesses can provide a number of add-on services around things such as affordability, insurance and tax standing.
The most important guiding principle of open finance, Mackenzie maintains, is the huge opportunity to level the playing field. “Fundamentally, financial services are a basic human right, and there are some staggering facts whereby large parts of the population do not have access to that basic human right,” he emphasises. “Also, I think that the ability to blend finance into our everyday lives is really exciting. It will create a really good opportunity to have financial services writ large.”
Encompass Wins Top Honors at Sibos 2023 Discover Perfect Pitch Competition
Encompass Corporation, the leading provider of dynamic Know Your Customer (KYC) process automation solutions was the winner of the Established Trendsetter category at the Discover Perfect Pitch competition held as part of Sibos 2023. This prestigious recognition serves as a testament to Encompass’ relentless commitment to revolutionising the landscape of financial services through innovative technology-driven solutions.
A testament of leadership
Competing in a highly competitive category, Encompass Corporation secured the title after its North America’s President, Alex Ford, delivered a live pitch to a panel of industry experts. The stage was set in Toronto, Canada, where Alex Ford outlined Encompass’ game-changing KYC solution and answered questions from the judges. The judging panel comprised senior leaders from banks, venture capitalists, and trailblazers in product innovation.
Discover Perfect Pitch: A Platform for Fintech Innovation
Discover Perfect Pitch, now in its fourth year, provides Fintech companies from across the globe with a unique opportunity to shine on the world stage. Participants are divided into three entry streams: Ambitious Adventurers, Community Pioneers, and Established Trendsetters. Sponsored by MaRS, Plug and Play, and RBC, this competition is renowned for celebrating the cream of the crop in the financial technology sector.
Encompass: A Trailblazer
As an “established trendsetter,” Encompass was commended for its trailblazing impact and success by the event organisers. This recognition reflects Encompass’ dedication to bringing about transformative change in the financial industry through innovation and technology.
Sibos: The Epicenter of Financial Services
Sibos provided the backdrop for this remarkable achievement. Held in Toronto this year, Sibos brings together industry leaders, innovators, and disruptors who gather to discuss the latest trends and advancements in financial services.
Wayne Johnson, CEO, and Co-founder at Encompass Corporation, shared his excitement about the prestigious win:
“It is fantastic to win this accolade, connected to a competition with a strong pedigree, and be crowned the winner of a category full of organisations leading the way in providing critical innovation to the businesses we serve. This recognition underlines the power and potential of the Encompass platform and is testament to our ever-increasing impact. We are proud this has been recognised by experts who trul
y understand and respect the value of the work we do.
“Encompass plays a key role in the fight against financial crime, with this award evidencing the importance of our commitment to improving the landscape and enabling banks and financial institutions to realise the benefits of trusting in technology-led processes.”
Inicio AI selected to be part of Morgan Stanley’s 2023 global cohort of the Inclusive Ventures Lab
Fintech is a force for good with inclusivity at its core. In that respect Scottish fintech Inicio AI is leading the charge on many fronts.
First, their innovative proposition brings more financial inclusion for people who are facing financial hardship. By leveraging the power of AI and chat and a revolutionary chat interface, they can help people come out of debt and manage their finances in a better way.
Secondly, their CEO, Rachel Curtis is a real role model for female entrepreneurs, demonstrating every day that when it comes to fintech success, gender doesn’t matter. In an industry still very male dominated, diversity is paramount to bringing diversity in innovation with new thinking and new approaches.
For all those reasons, Inicio AI has recently caught the attention of global financial giant Morgan Stanley. Inicio AI’s journey is a testament to the transformative power of technology and diversity in the world of finance.
The Inclusive Ventures Lab: Nurturing Innovation
One of Morgan Stanley’s core values is Commit to Diversity and Inclusion and they recently unveiled the latest global cohort of their Inclusive Ventures Lab, a programme aimed at supporting underrepresented founders of technology and technology-enabled start-ups. What makes this year’s cohort stand out is not just its size, but the calibre of companies selected.
This year, 23 companies from North America, Europe, the Middle East, and Africa were chosen, effectively doubling the size of previous cohorts. These start-ups represent a diverse range of disruptive technologies, spanning industries like fintech, healthcare, sustainable solutions, customer service, supply chain management, recruiting, and cybersecurity. All those companies are at the post-seed to Series A funding stage and ready to make a significant impact in their respective domains.
FinTech Scotland worked with Morgan Stanley to help identify Scottish fintechs who would be a good fit for the programme. Inicio was one of them and was the winner of the Scottish pitching event organised by Morgan Stanley at the University of Edinburgh earlier this year.
A Major Investment and Much More
What sets the Inclusive Ventures Lab apart is the substantial support it provides to the selected start-ups. Each company in the cohort receives a substantial $250,000 investment (£250,000 in the UK) from Morgan Stanley. However, this financial backing is not everything companies will get. They also gain access to a wealth of mentorship opportunities and invaluable business-growth resources through Morgan Stanley’s extensive ecosystem of both internal and external partners.
Meeting Inicio AI
Rachel Curtis, the CEO of Inicio AI, will be attending a panel at the Fintech Summit on Thursday, September 21st which will be chaired by Nicola Anderson, CEO at FinTech Scotland. This event marks the opening of the Scotland FinTech Festival, a platform showcasing the brightest minds and ground-breaking ideas in the fintech industry.
Zumo Unveils the Future of Digital Assets at Sibos 2023
Scottish fintech Zumo is at Sibos 2023 in Toronto to unveil a groundbreaking report that’s set to reshape the landscape of digital assets. Titled “Digital Assets 2023: Identifying Opportunities Across the Enterprise Landscape,” this report marks a significant milestone in the journey towards understanding and harnessing the potential of digital assets from an enterprise perspective.
A Pioneering Approach
“Digital Assets 2023” is not just another report; it’s a comprehensive survey, categorisation, and practical analysis of emerging opportunities within the global digital asset ecosystem. It is a deep dive into this nascent sector to uncover the possibilities it offers to businesses worldwide.
The report is backed by fresh insights from some of the biggest names in the digital asset and financial services industries. Collaborators include financial companies like HSBC, NatWest, and Visa, as well as blockchain innovators such as Ripple and Chainalysis. Notably, industry cooperative Swift, the organiser of Sibos, has also played a pivotal role by engaging its global community to explore how financial institutions can seamlessly integrate with the evolving blockchain networks.
A Glimpse into the Future
“Digital Assets 2023” serves as a roadmap for the evolution of blockchain technology from an enterprise perspective. It identifies four pivotal turning points that illustrate the progressive expansion of digital asset applications and participants, starting from the Bitcoin “big bang” moment (often referred to as ‘blockchain 1.0’) and culminating in the current ‘enterprise’ era (‘blockchain 4.0’).
To provide a clear understanding of the digital asset landscape, Zumo has created an enterprise ecosystem map that differentiates between consumer and institutionally-facing solutions, as well as investment versus applied use cases. The report then delves into the opportunities, challenges, and inter-relationships associated with nine specific use cases, categorised as early (institutional digital asset investment, institutional DeFi, web3), developing (tokenization, blockchain in industry, DLT for financial market infrastructure), and established (consumer-facing cryptoasset investment, and individual/business blockchain payments).
Insights from the Author
Daniel Taylor, Zumo’s Research and Policy Lead, and the mastermind behind this report, shared his thoughts on its significance:
“Active learning and knowledge development are integral to Zumo’s mission as a trusted partner for those venturing into the digital asset space. Today marks the dawn of the ‘enterprise’ era, where non-crypto businesses are actively engaging in all four quadrants of digital asset opportunity: consumer, institutional, application, and investment. Our report distills and synthesises these emerging opportunities, providing a comprehensive view of the digital asset and blockchain ecosystem.”
Download Your Copy
Explore the future of digital assets by downloading a complimentary copy of “Digital Assets 2023” at https://zumo.tech/digital-assets-2023/.
Unlocking Trust: Digital Wallets for Identity Verification and Asset Transfer
As part of Scotland FinTech Festival, the “Crypto FinTech Seminar” will outline some key areas of knowledge and innovation related to the usage of cryptography, blockchain, zero trust and quantum computers. We took some time to chat to Professor Bill Buchanan, who will be co-presenting the seminar along with Dr Mwarwan Abubakar, about the current trends and evolution of the digital assets space.
The fact that we still use our scribbled signatures and hard-copy contracts as a core method of proving our identity within high-value and high-risk transactions still amazes Bill Buchanan, Professor of Applied Cryptography at Edinburgh Napier University. Especially as these acts are often performed through the use of mainly untrusted communication systems such as electronic mail. “We still live very much with a paper-based approach to the ownership and the transfer of assets, and often see them poorly managed,” explains Buchanan. “Digital wallets can help solve this.”
Going forward, it is likely there will be a rise in the use of digital wallets, which can be used to transfer assets and – importantly – define ownership. A private key in a digital wallet can not only prove our identities, but also link to our ownership of assets, store our important digitally signed identity documents (such as our driving licence), and provide a way for us to digitally sign things. Improved methods of providing our identity will also likely include biometrics, hard tokens or our location information. At the core of this is public key encryption, which digitally transfers assets without the need for any network connection, and is a central component to moving into a more trusted digital world.
Nonetheless, a cautious equilibrium needs to be maintained between the rights of privacy and the requirements of compliance, such as with money laundering checks and fraud detection. While there are methods used in cryptocurrency that support a full anonymisation of asset transfers, it is unlikely that these would be allowed within a regulatory framework. “There are ways, though, to strike a balance between these things and instil strong levels of trust in transactions by using trusted financial organisations,” proffered Buchanan. “It is thus likely that we will see the rise of proxy entities (agents legally authorised to act on behalf of another party), who will shield the identities of those who are transferring assets, yet the transactions can still be fully checked.”
Going forward, regulation will be fundamental for providing trust, and licences will be needed to perform fully-auditable transactions. Overall, the key aim of the infrastructure behind digital assets must be for citizens to have a stronger integration with public services to move to a properly integrated digital world. “Unfortunately, without a strong identity infrastructure, we will struggle to scale our world into a more trusted one,” concluded Buchanan. “The EU, for example, now wants to roll out an e-ID digital identity for every European citizen, which will allow for closer economic and societal links across EU countries. This will support the freedom of movement across Europe and provide closer economic integration across borders.”
Embedded Payments: Paving the way for the future of business
Payments have always been the leading area of innovation for fintech companies in Scotland utilising open banking and embedded payments making it faster and more convenient to pay and transfer money both locally and globally. That is why Payments & Transactions was designated as one of the four key strategic priority themes of FinTech Scotland’s FinTech Research & Innovation Roadmap 2021-31.
Nick Adams, Director and Payments Experience Specialist at Modulr, spoke with us about how embedded account-to-account payments are enhancing the ability to seamlessly integrate payments into everyday experiences, enabling customers and businesses to make purchases without the need to input bank details, credit card or debit card information. Modulr is leading this category of B2B embedded payments and is registered as an Electronic Money Institution (EMI), enabling businesses to create accounts, control and access, receive and make payments, update systems and customers via webhooks – all on-demand through software.
“When people think about digital payments for businesses and the economy via ecommerce or other platforms they tend to think of card payment players like Checkout.com, Stripe, Braintree (part of PayPal) and then PayPal itself,” explains Adams. “Embedded payments is fundamentally different as it enables businesses to fully embed and control real-time money movements in and out of their businesses through software. The brands I mentioned, among many others, are third-party managed service providers that sit outside their clients’ business. They are focused on the checkout experience, but there’s a whole other area of business payments that has not been brought into the 21stcentury.”
By bringing embedded payments into their platforms, companies can offer their customers custom experiences that align much more to today’s consumer expectations, who want immediate notifications and frictionless payments like Uber and Amazon. Those businesses also want certainty in their Treasury functions on how much money they actually have at any point in time – a real-time view of their cash position. “Modulr enables hundreds of enterprise customers and thousands of SMEs to process and reconcile large volumes of payments automatically and in real-time rather than using antiquated batch processes,” describes Adams. “It’s providing access to real-time payments for all sizes of every business, from enterprises through to SMEs, to simply plug in through the same API and get the same control and visibility. This instils trust in both buyers and sellers, because they can actually see what’s happening in a transaction, instantaneously.”
From a personal perspective, Adams now considers himself a “payments guy” who, having worked for large global payments businesses, has now transferred to a Scottish fintech scale-up. His advice for those thinking of making a similar move:
- Don’t feel you have to be global from day one; payments is a globally fragmented industry and focusing on a country or region with harmonised payments regulation and processes makes sense. We’ve seen too many global-ambition payments startups fail due to over-stretch
- Promote the exciting opportunities of working in fintech to the talent derived from Scotland’s more traditional financial services businesses
- Be flexible with your teams, but spend as much time as you can together physically in the same space to create energy and move much more quickly.
Adams concludes, “What excited me about moving from a big corporate, to an early-stage scale-up was the ferocious speed and need to pivot constantly. It’s a very invigorating environment. Generally speaking, the people that are in it, I think are having great fun. I’d recommend this to anyone.”
Bupa everywoman in Technology Awards are open for nominations
The annual everywoman in Technology Awards, celebrating the most inspirational women working in Science, Technology, Engineering and Mathematics (STEM), are open for nominations for 2024 and have announced their new title partner, Bupa Global & UK. Companies and individuals are invited to put forward candidates until 9th October 2023 for categories recognising all stages of the career journey, from apprentices to C-Suite.
Now in their 14th year, the awards shine a spotlight on and celebrate the tech industry’s most exceptional talent, from the UK and beyond, creating role models to inspire and attract women and young girls into STEM careers and close the gender gap within technology.
As an innovative industry, new sectors and specialisms and therefore career opportunities continue to increase. The UK tech market has been valued at $1trillion making it the third most valuable in the world, confirmation that growth is not slowing. Despite this, women currently only occupy 24% of roles in the technology industry and recent research suggests that almost half experience burnout, with 7% adding that they have felt pushed to their physical and mental limits.
The new partnership between everywoman and Bupa reflects the tech industry’s responsibility to attract and retain female tech talent, ensuring that women are fully supported to fulfil their career ambitions in order to support growth.
Maxine Benson MBE, Co-Founder of everywoman comments:
“Since 1999, everywoman has been working to advance women in business and help organisations to achieve their gender goals via our awards programmes, learning and development content, and our training that’s been delivered to over 200,000 women. With 40% of our learning and development content having a wellbeing related theme we recognise that work, family, and health responsibilities are intrinsically linked so are very excited to be partnering with Bupa. We look forward to unveiling this year’s role models at the March awards ceremony with our programme sponsors, including SSE, Accenture, BAE Systems, Howden Group Holdings Ltd, American Express, Centrica PLC, Computacenter, Discover and RS Group.”
Nimisha Patel, Chief Digital & Information Officer at Bupa Global & UK comments:
“We are delighted to be the title partner of the everywoman in Technology Awards. Technology is key to delivering the best healthcare solutions for our customers, it underpins innovation, helps people to be proactive with their health and supports us in being more sustainable.
We want to support everyone to live longer, healthier, and happier lives, and we understand the challenges that women in the workplace can face. Partnering with everywoman will help women to continue making the impact they already are, and to become the brave, caring, and responsible leaders of the future. Not just for tech but for business.”
For 2024, a new category will be introduced to reflect the ever-changing landscape of the industry. The AI Award will be awarded to a woman who is excelling in her role and making a tangible difference to her business in the field of artificial intelligence.
The 2024 Bupa everywoman in Technology Awards are free to enter and all the categories can be found here. The awards ceremony and dinner will take place at The Park Plaza in London on 14 March 2024, after the annual everywoman in Technology Forum.
For more information visit www.everywoman.com/techawards
@everywomanUK #ewTechAwards
For more information contact Francesca Stainer, PR Manager, francesca@everywoman.com
New opportunity to join Scotland’s thriving fintech cluster
The University of Strathclyde has just published a new job opportunity and is on the look-out for a High Growth Advisor who will be working very closely with FinTech Scotland.
The successful candidate will play a key role in supporting the development of the Financial Regulation Innovation Lab which is launching later this year. They will collaborate closely with the University’s Industry Engagement and Innovation Directorate, the University’s FinTech Cluster Lead, and Fintech Scotland’s Strategic Innovation Director, Trish Quinn whose appointment was announced recently.
The Financial Regulation Innovation Lab builds upon the UK Fintech Research & Innovation Roadmapunveiled last year. The roadmap highlighted the potential for further research and innovation in financial regulation. Aligned with the UK Government Science and Technology Framework published in March 2023, the Lab aims to position the UK at the forefront of global science and technology.
The Lab will create a unique environment where fintech entrepreneurs, established UK and global financial services firms, technology enterprises, regulators, universities, and third-sector organisations come together to drive financial innovation, addressing opportunities and challenges in financial regulation.
Key responsibilities for this role include facilitating the Innovation Call series for the Lab, which comprises demand-led challenges set by industry.
Additionally, the role will involve developing essential partnerships between the University of Strathclyde, FinTech Scotland, and the University of Glasgow, to create more collaboration opportunities in the Scottish and UK fintech clusters.
The ideal candidate for the role should have extensive leadership experience gained from transforming leading financial sector companies digitally. They will be instrumental in shaping the Lab’s interactions with diverse stakeholders, developing effective networks, sector relationships, and multi-party collaborations through their strong negotiation skills, business acumen, and strategic vision.
Interviews for this exciting opportunity are scheduled for October 2, 2023.
To apply visit this page
For more information or informal inquiries, please contact Catherine Breslin, Head of Industry Engagement & Commercialisation, at catherine.breslin@strath.ac.uk.
FinTech Scotland appoints senior leader to accelerate plans for the Financial Regulation Innovation Lab
FinTech Scotland has announced today the appointment of a new senior leader, Trish Quinn, who joins as Strategic Innovation Director. Trish will be leading the development of the Financial Regulation Innovation Lab (FRIL) which is due to launch later on this year.
The Financial Regulation Innovation Lab (FRIL) is one of the recommendations laid out in the UK Fintech research & Innovation Roadmap published in March 2022. It is set to be a new collaborative centre of excellence for cutting-edge fintech developments in financial regulation. The Lab will explore solutions that aim to streamline regulatory processes, enhance compliance measures, and drive efficiencies across the financial sector.
FinTech Scotland, in partnership with industry partners, and with the University of Strathclyde and the University of Glasgow, will stand up the launch the Lab and drive progress this year. This industry-led initiative showcases the power of the Fintech Scotland Cluster to drive innovation. This project is funded by the Glasgow City Region Innovation Accelerator programme, led by Innovate UK on behalf of UK Research and Innovation. This financial support from the UK Government continues to endorse the opportunity from the emerging fintech sector to support growth across the UK economy.
As the newly appointed Innovation Director, Quinn will be responsible for leading the Lab and working with partners across Scotland and in the UK, in delivering a programme that will enable efficiencies through technology to meet the needs of current and future financial regulation. Quinn brings a wealth of experience in digital transformation and digital product development to her new role, having previously served in a number of senior digital roles in both the UK and Scottish Government.
Commenting on her appointment, Trish Quinn said:
“I am delighted to join FinTech Scotland as the Innovation Director and lead the Financial Regulation Innovation Lab. The potential to reshape the financial industry through technology applied to financial regulation is significant, and I am excited to join the team at FinTech Scotland to drive innovation, foster collaboration, and contribute to the growth of the fintech sector.”
Nicola Anderson, CEO of FinTech Scotland, said:
“Trish brings extensive experience in digital transformation, leading strategic initiatives across her career with an emphasis on change through collaboration and partnerships. Her leadership and experience will help us accelerate the Lab’s development, creating the conditions needed for more fintech growth in Glasgow and the FinTech Scotland cluster.
David Hillier, Associate Principal and Executive Dean of the University of Strathclyde Business School said:
“We are excited to welcome Trish to lead this critical initiative. The University of Strathclyde has significant expertise to bring, and we’re looking forward to driving this initiative, working closely with our industry partners across the FinTech Scotland Cluster and our academic partners in the University of Glasgow to drive this opportunity for Glasgow City Region. The Lab creates the environment for high-potential innovation in a subject that’s fundamental to the success of our financial system”.
Eleanor Shaw, Head of the University of Glasgow Adam Smith Business School said:
“Trish will lead a ground-breaking initiative that’s a first for Scotland and the UK, and we are delighted to be working with her. It’s fantastic to see Glasgow City Region’s innovation capabilities and ambition come together to create what will become a key asset for Scotland and the UK in driving innovation in financial regulation. The University of Glasgow is looking forward to playing a leading role.”
Dr. Catherine Martin, Vice Principal Corporate Services, University of Edinburgh said:
“I’m very pleased to welcome Trish to FinTech Scotland and want to congratulate her on this appointment. The Financial Regulation Innovation Lab is an exciting new endeavour and we at Edinburgh are pleased to support this opportunity for Glasgow and for Scotland. As a founding member of FinTech Scotland it’s a pleasure to see the fintech opportunity continue to grow across Scotland and the UK”.