Tesco Bank introduces new payment technology
FinTech Scotland’s strategic partner Tesco Bank just introduced a new technology, enabling 2.6 million credit card customers to manage and pay their balance in a much easier way.
The new functionality, called Pay by Bank’ is powered by Mastercard’s Open Banking Connect™ service, a service that allows for payments to be made directly from current account via electronic payment services.
Tesco Bank is the first in the UK to use Open Banking in this manner.
For customers it means they don’t need to use a debit card, can see their current account and their credit card balance in the same place whilst benefiting from added security.
The new technology release is being staggered and all customers should have access to it in the next few weeks.
Sigga Sigurdardottir, Chief Customer Officer, Tesco Bank, said:
“Tesco Bank’s purpose is to help Tesco shoppers manage their money a little better every day. The introduction of Pay by Bank helps us do that for 2.6 million of our credit card customers, giving them a simple and secure way of paying their credit card, and greater control of their finances.
“We are particularly pleased to be the first UK bank to make this technology available for credit card customers. We expect this functionality to be widespread in the market in the coming years.
“This is a great example of the strength that our partnership with Mastercard brings to our credit card offering.”
Kelly Devine, Division President for Mastercard UK and Ireland, said:
“Bringing more simple, safe and convenient ways for people to pay is at the very heart of our Open Banking solutions. With this enhancement, Tesco Bank customers will have greater flexibility to make payments against card balances than ever, aiding budgeting and placing them in full control of their finances.”
*This is subject to your bank’s capability
Digital jobs in Edinburgh and Glasgow growing again
The digital tech sector recovery
In a new research conducted by Tech Nation for the Government’s Digital Economy Council it has been revealed more than a fifth of the workforce of each city is now employed in digital tech at a time when tech companies are starting to recover in confidence and begin to advertise jobs again.
Scotland’s tech sector growth has been outgripping that of London and the South East, for several years now. There are also encouraging signs of recovery with big announcements such as Amazon announcing that it would create hundreds of new roles in Fife and Dundee.
This is in line with the national trend with number of jobs advertised in the digital space rising by 36% between 7th June and 9th August 2020.
Before the Covid19 pandemic and the lockdown, the digital tech sector had been advertising 150,000 jobs a week in the first three months of the year, according to data from jobs website Adzuna. The number fell in line with all other sectors but have since recovered to reach 90,297. Tech is the UK sector posting the highest number of vacancies, after healthcare.
In-demand roles in Scotland
According to Adzuna, 16.5% of advertised jobs in Scotland are in tech with jobs such as engineer in Edinburgh increasing by a quarter. In Glasgow devops engineers and engineers advertised roles are up by 85% and 84% respectively.
UK continues to create unicorns and see strong venture capital investment
In 2020 VC funding has reached €8.5bn to date, according to Tech Nation’s Data Commons. This compares to €4.0bn for Germany, and €3.1bn attracted by French startups in 2020.
There are 120 companies now valued at between $250m and $1bn. Many investors ares still looking to invest in tech, helped by the Government’s £250m Future Fund in some cases.
Salaries
2019 median salaries for digital tech roles across the UK – £39,000
2019 median salaries for digital tech roles in Edinburgh – £44,938,
2019 median salaries for digital tech roles in Glasgow – £40,000
Edinburgh’s median salary is the highest outside London, where the median digital tech salary in 2019 was £55,000, growing 3% from £53,296 the previous year.
Factoring in the cost of living, cities outside London can have significant attractions from an employment perspective. Edinburgh and Glasgow are the third and fourth best value place in the UK for someone working in tech to live and work. For Data Scientist and Infrastructure Engineer roles, Edinburgh was more attractive than London when living costs are taken into account.
Digital Secretary Oliver Dowden said:
“These new figures demonstrate the strength and depth of our tech sector as an engine of job creation kickstarting our economy as we emerge from the pandemic. We are a nation of innovators, entrepreneurs and inventors, and technology will underpin our infrastructure revolution of national renewal to unite and level up the UK. This government is backing people to succeed by investing heavily in cutting-edge research, digital skills and digital infrastructure to support our economic recovery.”
UK Government Minister for Scotland Iain Stewart said:
“It is fantastic to see our multi-billion pound digital tech sector not only continue to thrive but make a vital contribution to economic recovery as we emerge from the coronavirus pandemic. This report shows Scotland is a competitive choice for both companies and individuals creating high-quality, well-paid jobs. We are at the forefront in pushing the boundaries in areas such as artificial intelligence, big data, cyber security, fintech and gaming. The UK Government is proud to champion the digital tech sector and will continue to support its growth in Scotland.”
Photo by Anna Shvets from Pexels
Best CASS Solution award for AutoRek
Scottish fintech company, AutoRek just announced it had won the Best CASS Solution’ award at the Systems in the City Financial Technology Awards 2020.
Lyn Canavan, Head of Marketing at AutoRek, commented,
“We are delighted to have been recognised as the provider of the Best CASS Solution’ at the Systems in the City Financial Technology Awards 2020. Achieving this accolade is a testimony to the team’s continued hard work and dedication in consistently striving to offer a superior CASS Solution.”
for the first time in 18 years the ceremony was done remotely via digital conferencing. This award is organised by Goodacre and recognises suppliers of services and systems to the regulated financial services sector. Based on an independent and factual annual accreditation process the selection process is overseen by three independent judges.
AutoRek are delighted to have been recognised at this awards ceremony again this year having previously won Best Reconciliation System’ for the past 5 years.
The Awards provide an important point of reference for user firms assessing the suitability of their operational infrastructure.
Fintech Previse, finalist in Innovator of the Year Awards
Fintech Previse announced today that they have been named a finalist in The Spectator’s Economic Innovator of the Year Awards. The awards recognises the companies that will rewrite the rules and help rebuild the economy in 2020.
This is a very prestigious award and the winners will be announced after digital presentations made today by the various businesses to the judges.
Paul Christensen, CEO of Previse, said:
“Being named a finalist for Economic Innovator of the Year by The Spectator is a testament to the team at Previse, who have been working day-in-day-out during the pandemic to ensure that SMEs get the support that they need. This year, we have been accredited as a CBILS lender, and our £2.5 million grant from the BCR to accelerate growth, along with the partnership with the FSB, has been an exciting new chapter in our story. However, the hardest work is yet to come as the global economy must innovate its way out of a depression unapparelled in modern economic history. What we are building here goes beyond just a great product: we’re creating a movement that ensures that every SME has the option of instant payment whenever they issue an invoice.”
EedenBull now with PSD2 licenses – ready to drive change in commercial payments through Open Banking
The Norwegian Financial Supervisory Authority has formally approved EedenBull’s PSD2 extension to their E-Money Institution (EMI) license, and the FinTech is now a fully licensed PIS and AIS provider, enabling the access of data and the initiation of payments from bank accounts throughout Europe.
The Payment Services Directive 2 (PSD2) was introduced in Europe in 2018 and regulates payment services and providers in Europe. PSD2 enables open banking by allowing customers to use the services of third-party providers to access account information or initiate transactions on their behalf. PSD2 gives providers a regulated, open market to compete in, while providing customers more payment options and increased security.
Says Nicki Bisgaard, CEO of EedenBull:
New technologies, new regulations like PSD2 and new players entering the payments space changes forever the way consumers and businesses think about payments. At EedenBull, we’re not only embracing change, but seeking to work with our partner banks to drive change and leverage the opportunities provided. With our E-Money License extended to include the right as an Account Information Service Provider to pull data from our customers’ bank accounts and as a Payment Initiation Service Provider initiate payments directly from bank accounts, we are in a unique position to develop and launch truly unique payment services.’
EedenBull was founded in 2018 and has recently launched it’s Q Business® programme with 65 banks in the Nordics and are now expanding the platform to include full commercial cards issuing capabilities across all segments from small business to large corporates and across all B2B spend categories. EedenBull is a fully licensed and regulated e-money institution under EU/EEA legislation, AISP & PISP licenses and is uniquely also holding principal issuing licenses from Mastercard, Visa and UnionPay. The company is targeting bank partners in select markets around the world and are aiming to launch programmes in multiple regions over the coming 12-24 months.
Further information:
Nicki Bisgaard ”“ nicki@eedenbull.com
Photo: Nicki Bisgaard, CEO EedenBull
Photo by: Debra Hurford Brown
Announcing 2020 Scotland’s Fintech Festival
FinTech Scotland confirmed today the programme for the third Scotland Fintech Festival.
The September festival will see a diverse range of fifty plus events throughout the month sharing fintech developments in Scotland and from around the world.
The festival will build on the successful events from the last two years which has seen it grow in popularity welcoming thousands of people
The 2020 edition will be different with events being held online and the virtual nature of this year’s festival will provide the opportunity to reach an even broader global audience.
The large number of events range from very focussed one-hour sessions to full day generalist digital conferences involving a diverse set of contributions from participants.
FinTech Scotland has worked in close collaboration with the teams at Scottish Development International and Visit Scotland to showcase the very best in innovation with a strong global emphasis.
The fintech cluster in Scotland is maintaining the momentum despite the current economic uncertainty. In many respects, the challenges of the pandemic have driven an accelerated adoption of fintech innovation, very much reflecting the creativity and adaptability of fintech entrepreneurs and SMEs.
This year’s festival will offer plenty of occasions for the innovative firms in the community to share their propositions as well as the collaborative and inclusive approach to reinventing the financial world and more.
Economy Secretary Fiona Hyslop said:
“I’m pleased to be supporting the FinTech Festival, an event which will demonstrate yet again the collaborative and innovative approach of the sector.
“We want the tech sector to play a key role in our economic recovery, and this festival will be a chance to discuss how FinTech can lead the way in supporting growth and creating jobs.”
Stephen Ingledew, Chief Executive at FinTech Scotland said:
“More than ever before this year, we have appreciated the valuable engagement and collaboration of our strategic partners and friends in hosting events on such a broad range of themes. From fintech firms , citizen groups, the regulator, student associations, universities, financial firms, global enterprises, government bodies and many others all reflecting the inclusive nature of Scotland’s fintech cluster.”
All events can be accessed on www.scotlandfintechfestival.com where new events are being added daily.
Follow the festival on social media #ScotlandFintechFestival
LendingCrowd approved for accreditation under CBILS
Scottish fintech LendingCrowd, just announced it had been approved for accreditation by the British Business Bank as a new lender under the Coronavirus Business Interruption Loan Scheme (CBILS).
This accreditation will allow the fintech to distribute UK government-backed loans to SMEs impacted by the Covid-19 pandemic. LendingCrowd will provide loan product from £50,001 to £250,000 across either a three or a five-year term to SMEs who are experiencing lost or deferred revenues, leading to cashflow difficulties.
SMEs will have nothing to pay for the first 12 months so they can focus on bringing back their company to a healthier position.
Stuart Lunn, founder and CEO of LendingCrowd, said:
“We appreciate the stress and struggle that SMEs are going through and that time is of the essence in providing support. Our agile and flexible approach means that we can distribute funding responsibly to those who need it quickly. We have already spoken to every existing borrower, implemented repayment holidays for qualifying borrowers and changed repayment dates to better suit their cashflow patterns at no cost. In offering CBILS loans, LendingCrowd can play its part in supporting the survival and resurgence of as many SMEs as possible.”
If you’d like to apply for CBILS funding through LendingCrowd go to https://www.lendingcrowd.com/cbils
LendingCrowd will begin offering CBILS loans imminently and they will be available to new and existing borrowers, subject to eligibility.
EedenBull and Mastercard Asia Pacific partnership
Mastercard and Scottish fintech EedenBull have announced the extension of their strategic partnership from Europe to the Asia Pacific region to support the fintech’s new digital platform launch. The platform will allow banks and businesses to process spending and payments more efficiently.
Building on a partnership in Europe, this relationship will enable Eedenbull to tap into opportunities in the Asia Pacific business-to-business payments market.
For banks and their business customers, the new service provides innovative commercial payments services, including EedenBull’s spend management platform Q Business® that offers a sophisticated yet easy-to-use solution to digitise the slow and costly processing of checks and cash. With Q Business now offered by a network of banks in the Nordics, more than 10,000 registered businesses are benefitting from the process efficiencies and control of spend provided.
Yunsok Chang, Executive Vice President, Market Development, Asia Pacific, Mastercard said:
“Following Europe, Mastercard is delighted to partner with EedenBull in Asia Pacific and to support its unrivalled expertise to leverage the commercial payments space in the region. With Mastercard’s leading advisory experience, sophisticated commercial solutions and wide network of customers and partners, Mastercard will be able to help EedenBull thrive in this market of significant opportunities.”
The extension of the partnership beyond Europe is a testament to Mastercard’s strategy of working with fintech firms to drive innovation and create opportunities for other partners in the Asia Pacific region. As a frontrunner in payments technology, Mastercard is continuously developing new solutions catering to the evolving demands driven by rapid digital transformation.
Nicki Bull Bisgaard, CEO of EedenBull said:
“At EedenBull, we uniquely combine specialist commercial payments expertise with tech-savvy talent, making us the ideal partner to banks. While payment products and services are now more user-friendly, product management is growing more complex and requires access to specialists in marketing, revenue management, IT, legal, regulatory and many other areas. Selecting Mastercard as our preferred partner to support us in creating real value for our partner banks and their customers and to support our expansion in Asia Pacific was easy as we share the same view on what businesses require and how we can best meet those requirements in an ever-changing world.”
Significant Funding Boost for Scotland’s FinTech Cluster
The growing international role of Scotland’s fintech cluster was given a further significant boost today with the announcement of £22.5 million innovation funding for the Global Open Finance Centre of Excellence (GOFCoE) to be established in Edinburgh and the Central region.
The news was confirmed by UK Research and Innovation, the Government research funding agency, as one of seven proposals being funded by the Strength in Places Fund aimed at supporting innovation and economic growth.
GOFCoE will provide a trusted environment for participants from around the world to research and develop innovative solutions aimed at delivering social and economic benefits through open banking and financial data.
For example, the initiative will present opportunities to conduct research into public earning, spending and saving to allow innovative enterprises to create citizen focussed financial services as well as enable policy makers to understand the economic and social impact of policies and regulations before implementing them.
The ground-breaking concept and the development of the initiative over the last two years has been led by the University of Edinburgh, FinTech Scotland, the Financial Data and Technology Association (FDATA) and Scottish Enterprise with the support of a broad range of organisations.
The announcement will further bolster the global recognition of Scotland’s fintech cluster, following on from the formal European cluster excellence accreditation earlier this year, by providing the opportunity for greater research and development in financial innovation to support sustainable economic development.
Commenting on this news, Stephen Ingledew, Chief Executive of FinTech Scotland said,
“The news reinforces the value of cluster collaboration between the diverse range of entrepreneurial enterprises, academics, large institutions, government and citizen groups in embracing the role of data in driving financial innovation to benefit all.
With engagement across Scotland, UK and globally, the initiative will further reinforce the inclusive international approach in developing the fintech cluster which is focused on delivering better consumer financial outcomes and sustainable economic growth through innovation.
I would like to pay tribute to my colleagues Kevin Collins and Damien McGarrigle of University of Edinburgh, Gavin Littlejohn of FDATA , Nicola Anderson of FinTech Scotland along with the rest of the GOFCoE project team for their terrific leadership over the last couple of years in securing this funding opportunity.”
Ivan McKee, Minister for Trade, Investment and Innovation, said:
“I have had the pleasure of working with all of the proposals from Scotland in this competition. Each one demonstrates our appetite for innovation and desire to translate this into benefits for people and places across Scotland.
“I am delighted that the Global Open Finance Centre of Excellence is one of the two projects from Scotland that have received funding from this highly competitive fund. This project will unlock the benefits of open banking and will enhance Scotland’s position as a top destination for fintech.”
The University of Edinburgh’s Senior Vice-Principal, Professor Jonathan Seckl said:
“Using real financial data for social good and allowing governments, companies and people to make better economic and financial decisions is at the heart of the Global Open Finance Centre of Excellence.
Never has there been a time of greater need for data-driven insights into the UK economy. The award from the Strength in Places Fund will allow us to make a unique contribution to the economic recovery from Covid-19. The Centre will be a world-first, providing leadership, coordination, research and capability to develop the benefits of Open Finance and to safely unlock the potential of customer data as a force to improve lives.”
Philip Grant, Chair of Scottish Financial Enterprise, said:
“This is great news for the continued development of the fintech cluster in Scotland and a credit to all the partners involved. The collaboration so evident in this initiative is now recognised as the driver of the continued growth and success of financial services as an important part of the Scottish economy.
SFE and our members will continue to support the important work of FinTech Scotland and its ambition to be one of the top five fintech clusters in the world.”
Linda Hanna, Managing Director of Scottish Enterprise, said:
“This award is excellent news for the Fintech sector in Scotland and for our economy as a whole. The Centre of Excellence project sets out to help Scotland maximise the societal benefits of Open Finance, such as enabling quality financial services in disadvantaged areas ”“ in line with SE’s increasing focus on inclusive growth and tackling inequality.
“FinTech is fast becoming one of Scotland’s key sectors and, particularly in the current climate, it is crucial that we continue to build our digital capability and our use of data, making our mark on the digital industries. The project will further boost the recognition of Scotland’s distinction in this field internationally, following on from our recent accreditation as a European Cluster of Excellence.”
An interview with Nicki Bisgaard, CEO at EedenBull
Congratulations on your recent announcement about the extension of your strategic partnership with Mastercard. Can you tell us a bit more about what it means for EedenBull?
Thank you. The strategic partnership with Mastercard is key as we continue to develop our new and innovative payment programmes, making it easier and safer for businesses to pay and get paid in an ever changing world. Both Mastercard and EedenBull service banks and their customers and seek to secure competitive advantages for the banks we service together. Having a partner like Mastercard strengthens our ability to innovate through direct access to Mastercard’s assets and expertise, it significantly strengthens our distribution power and it creates significant awareness throughout the European marketplace for who we are and what we can do. That said, there are obvious benefits to Mastercard too. Through EedenBull they gain access to highly specialized expertise particularly in commercial payments as well as an extremely committed team of developers.
Can you speak to us about some of the new developments at EedenBull?
As you know, we have already launched our Q Business payments and spend management platform which is a direct response to universal requirements of small and medium sized businesses, organisations of different sizes and the public sector for enhanced control, spend visibility, and streamlined payments processes. The programme is currently being distributed by 65 banks in Norway with several thousand businesses already using the service. We are continuously developing new and exciting features and functionalities, always with a customer centric approach, understanding and responding to customers’ real issues and challenges.
With the current COVID19 situation have you seen more companies approaching you to manage expenses remotely?
The short answer is yes. We are seeing a great interest in our services from exisiting and potential new partner banks around the world as well as from their customers. The pandemic has certainly brought about an increased awareness of payments related issues facing businesses of all categories and sizes. Even prior to the outbreak, we already had a situation where new regulations, new technologies and new players were changing the way businesses and consumers were thinking about payments. Many of the trends we saw emerging towards the end of 2019 have been accelerated by the pandemic. Think about contactless payments, e-commerce, cashflow, need for working capital to mention but a few.
You opened your Scottish office last year; can you tell us about what your experience of the Scottish fintech cluster has been so far?
It’s been great. Ever since setting up shop in Edinburgh, or even way before, we have enjoyed the support we have been receiving from the Scottish fintech community in general and FinTech Scotland in particular. The access to likeminded businesses and organisations, the government in Scotland and the many extremely talented people we have been lucky enough to employ has quite frankly been instrumental in securing the momentum and successes we have enjoyed thus far.
Are you looking to grow your presence in Edinburgh in the next 2 years? How many people will you be recruiting?
Just to make one thing clear: We are staying in Edinburgh, no question about that at all. We love being a part of the fintech scene in Scotland and are committed to continuing over years to come. We will be growing our presence in Edinburgh over the next 2-3 years for sure and will be investing further in attracting talent to work in our team in Scotland. I would be surprised if we by end of 2022 had not increased the number of team members by any less than 100%.
What are the main differences between scaling up a fintech in Edinburgh and Oslo?
What a great question. Upon reflection I would have to say that I think scaling up in Edinburgh isn’t very different from scaling up in Oslo. In fact, probably much more similar than compared to many other locations we could have chosen. We find that the cultural differences are fewer than the similarities, the talent pool is similar, the governmental support on the same levels and the fintech scene is energetic in both cities. There are some obvious current and historic bonds between the two small nations which made it easy for us to come to Scotland and has made it easy for us to stay and to grow in Scotland. We love being here.