Previse’s expansion in Scotland. Interview with the Chief Product Officer
Earlier this month we received some great news from Previse. The B2B payment decisions start-up managed to secure £800k R&D grant from Scottish Enterprise in order to to set up an new development centre in Glasgow, creating 37 new data science jobs.
FinTech Scotland spoke with David Brown, Previse’s Chief Product Officer to understand the decision process that lead to the firm’s move this side of the border.
How did Previse come about?
We identified that current solutions to financing trade finance assets involved too much process change and this change more often than not would lead to the demise of payments in the supply chain as most focused on the Top suppliers i.e. the 80/20 rule. The majority of any major corporate spend is with the top 100-200 suppliers, the remainder [referred to as tail spend] can involve thousands of smaller suppliers more often than not most SME’s would fall within this segment. Previse identified a huge gap in the current market offerings and their failure to address this segment and have now developed a solution specifically to address SME payments within the Global Supply chain using, with virtually no process change to deploy.
Why did you choose Scotland to establish your new base?
After meeting with the Scottish Enterprise, Datalabs and the university professors, we came to the conclusion that the right building blocks are being put in place to address the skills gap that is required to enable a digital world and from there a fintech solution.
And why did you choose Glasgow specifically?
This was perhaps the hardest of the decisions but based on the fact the JPM, Barclays and MS have their operations in Glasgow, helped in our final decision.
Where would you like to see improvements in the Scottish fintech proposition?
Fintech in our opinion involves several key ingredients; technology, liquidity and legal without this it could become just tech. It is important that whilst we challenge the use of new technologies, we also challenge our legal frameworks and boundaries to ensure the asset is attractive for finance. Active collaboration between all parties is necessary and should be without conflict as the outcome benefits all.
In your opinion what is the biggest challenge Scotland is facing when it comes to becoming one of the leading fintech hubs?
References. We need strong case studies as change is hard but once you get through the inertia of change it becomes the norm. Scotland must collaborate, promote and get behind platforms, to generate the need and desire for talent, after all this is a new world with new challenges but also amazing opportunities to build world class talent and present a showcase of successful reference accounts to build upon.
Can you tell us about some exciting developments at Previse?
We are in the final stages of some major announcements both in partnerships and in client adoption and are busy hiring in Glasgow to support our growth. Partnering is key to Previse as we have built an enabler and each partnership we announce confirms our strategy and validates our vision.
You told us previously you’d like to spend more time in Scotland. What are the thing you enjoy doing/visiting when you’re up here?
Now I am here after working away for close to 30 years, I am looking up and finding everyone that meant something to my life and growing up, so catching up with neighbours, school and work friends and ex work colleges etc. is top on my agenda.
Are you planning on moving permanently to Scotland?
You never say never and I would like to think that is possible at some stage, I may need help with my Wife Sammi.
You told us previously you’d like to spend more time in Scotland. What are the thing you enjoy doing/visiting when you’re up here?
One of my best friends is Colin Barr who happens to own the Bierhall in Gordon Street so it would have to be that one.
What’s your favourite place in Scotland?
Loch Lomond, I have fond memories of my childhood and swimming there and also my big sister Ireney had her ashes spread there so it is now a very special place for all of us.
Appointment of FinTech Scotland’s CEO
At FinTech Scotland we’re proud about the fact that we’ve been created and managed by members of the eco-system through the Scottish Financial Enterprise Fintech Steering Committee. Being built from the ground up means that we’ve gained a great understanding about the needs of fintechs, established brands, academia and the public sector. We’ve now reached a stage to use that insight to take FinTech Scotland to the next stage and develop a strategy for the fintech sector in Scotland.
We’re delighted to announce the appointment of Stephen Ingledew as CEO of FinTech Scotland.
Stephen bring with him years of experience in the financial sector where he focussed amongst other things on implementing customer focused and technology enabled initiatives.
Stephen previously worked as senior executive for companies such as Standard Life and Barclays as well as small innovative financial enterprises He’s always been an influential advocate of making financial services more open, creative and inclusive to all through new innovative technologies, encouraging diversity and progressive ways of working as well as improved collaboration across stakeholders and participants.
Throughout his career Stephen has also occupied a number of non-executive director roles including with Scottish Financial Enterprise; The Institute of Financial Services; The Chartered Insurance Institute and The Financial Services Authority.
He is a frequent author of articles and regular contributor at major global conferences on subjects ranging from customer strategy and execution, fintech and insurtech innovation as well as business change leadership. He is currently a non-executive director of Marketing Edinburgh, the body responsible for promoting the region.
Our new `CEO will work closely with a broad range of stakeholders including members the fintech community through the FinTech Practitioners Forum, SFE’s Fintech Steering Committee, and our 2 HM Treasury envoys. Stephen has already indicated that he would focus his efforts on creating an integrated and thriving ecosystem through the provision of funding, support, infrastructure and talent that recognises and responds to the needs of all stakeholders and connect Scotland to other global Fintech centres.
You will be hearing a lot more from Stephen in the coming weeks so stay tuned and subscribed to our newsletter.
University of Stirling Launches new Fintech Masters Course
The Glasgow University FinTech Society – the story so far
What is Glasgow University FinTech Society?
The society was created in summer 2017. It’s goal is to increase knowledge and raise the profile of fintech among university students.
They have adopted a fresh approach to fintech, opening membership to students of any degree as long as they are interested in technology innovations. This is important as successful start-ups and SMEs will need more than tech and financial skills. As with all businesses, marketing, data, user experience, human sciences and much more will be necessary to develop sustainable and fruitful businesses.
A fast-growing society
The group has developed very quickly, acquiring 70 members in 3 months. They are a mix of first-year to PhD students. Through this group they will get opportunities to develop their knowledgge about everything fintech thanks to the organisation of events on various topics such as blockchain, cryptocurrencies,
P2P lending, and much more.
Jan Jindra, President of the society told us:
“What makes our society unique is that our society members form teams in advance to the event to
research the specific FinTech-related topic on their own first, write a group report and eventually
deliver the presentation at the event to other students. This supports the idea of “learning by doing”
and it becomes a very useful experience for everyone involved”.
3 events have been held so far:
-What does fintech mean?
-Blockchain and Cryptocurrencies (Students were able to create their
own crypto tokens and learn from speaker Dug
Campbell, Blockchain consultant and writer.)
-Peer-to- Peer lending and Stock Trading Apps.
More vents are being planned especially around the topics of AI and Ethics which is a growing topic within the tech community.
They’ll also cover regulations in FinTech.
One of the most exciting initiative is their Applied FinTech Project. Members will work with existing FS brands on FinTech matters.
They are looking to contact businesses interested in partnering with the society to look at challenges and opportunities. If it wasn’t interesting enough, they decided to provide this at no cost at all.
Seed Haus ”“ open for second cohort
Seed Haus, the Scottish pre-seed tech accelerator, are now accepting applications for their second cohort. If you’re interested you have until 30th December to apply for £30,000 of equity investment from Scotland’s top-tier tech investors.
Who are Seed Haus?
Calum Forsyth, CEO, and Robin Knox, Chairman founded Seed Haus after identifying a gap in the startup support system. They decided to create the only incubator in Scotland which provides entrepreneurs with start-up capital as part of the package. On top of office space and the capital the pair also designed a solution that provides mentoring, peer meet-ups and investor sessions.
The first cohort launch early 2017 with 5 of the most exciting start-ups in Scotland: Drinkly, Kindaba, Sansible Wearables, Security CTRL, and Taka.
The selection process
Out of all the applications, 5 startups will be selected and offered a place in the programme. Seed Haus is working with renown partners: Alistair Forbes, James Watt of BrewDog, Gavin Dutch, Paul Walton, Judy Wilson, Rob Dobson, Paddy Burns, Chris van der Kuyl, Paul Davidson, and Sir Tom Hunter.
Calum Forsyth declared: “Our deal terms are incredibly founder friendly. The founders backed in cohort 1 were originally looking to raise around £100,000 with very little traction. Based on the current investment climate in Scotland, that would have meant selling a big part of their business, at a formative stage, hampering future growth and fundraising. Pleasingly, they saw the value in aligning with Seed Haus which allows them to hold on to a greater portion of equity and lay the foundations for a truly scalable business”.
Who can apply?
Most entrepreneurs can apply but Seed Haus is most interested in people with domain expertise. Seed Haus provide investments which allow entrepreneurs to cover their living costs. It therefore removes some of the risks that could have stopped some entrepreneurs making the leap. Transitioning from full-time work to entrepreneurship can be hard, Seed Haus take some of the fear away.
Edinburgh Hosts Event On Personal Data And Open Banking
New rules demanding a new approach
The EU’s PSD2 legislation that is closely aligned with the work of the Open Banking Working Group is going to make a significant difference to the operation of financial services both in Britain and in Europe, effecting far-reaching changes for years to come.
As of 18 January, consumers, SMEs and even corporates will be offered the opportunity to consent to having their personal data shared securely with financial institutions other than their own bank, with the option of choosing new products and services.
If this were not enough, the General Data Protection Regulation that comes into force across Europe in May will place far greater demands on companies to protect their customers’ data than at present and gradually raise customers’ attitudes towards the management of their personal information.
It would seem that the traditional and emerging finance communities as well as consumers are going to have varying expectations on how the new rules and ways of operating are going to work.
Why do Open Banking and GDPR matter now?
The urgency for innovation has rarely been more felt and is going to become a pressing need, if it isn’t already.
The good news this week at least is that Edinburgh, where much of this disruption is going to have significant impact, will be discussing these issues and more in a one-day event hosted by the Trust in Digital Life association, The ID Co. and the School of Informatics University of Edinburgh.
The objective of Whose Data Is It Anyway? is to achieve a fresh perspective on how potential conflicts of interest can be avoided in the future, particularly in the context of open banking, and what the landscape might look like in a few years’ time for banks, businesses, SMEs and the rest of us.
Whose Data is it Anyway? takes place at the Informatics Forum, University of Edinburgh, starting with breakfast from 08.30 to 09:30 and finishing at 15.15 on Thursday 14th December 2017. Attendance is free when you register in advance.
(Once you’ve registered, tweet to #whosedata)
About TDL
The Trust in Digital Life (TDL) community comprises leading industry partners and knowledge institutes that hold trust and trustworthy services to be an essential ingredient of the digital economy.
TDL members are committed to enabling a trustworthy ecosystem that protects the rights of citizens while creating new business opportunities. To this end, TDL researches, pilots and incubates trustworthy ICT services and technologies in an innovative environment.
TDL forms the bridge between citizens entitled to the best possible services and an industry that develops devices, applications and services that protect them from Internet threats and provides them at an affordable price. A major focus is on the research and business agenda of the European Union.
From banking to healthcare, driverless cars to online shopping, every aspect of our 21st century digital world is dependent on varying degrees of trust between consumers and suppliers, governments and their citizens.
The continual threat of cyber-attacks has the potential to undermine our confidence in taking full advantage of the opportunities available to grow the digital economy, not only in Europe but across the world.
The objective of this community of industrialists, entrepreneurs and academics is to provide the tools and awareness that the wider community can benefit from in their daily digital lives. Their mission is to create a trusted ecosystem based on innovative and trustworthy ICT products and solutions that protects the data and assets of European citizens and enterprises.
www.trustindigitallife.eu
Bitcoin vs. Scotcoin – the Scottish cryptocurrency alternative
It’s becoming very hard to ignore cryptocurrencies. Whether you’re a cryptocoin enthusiast or a confirmed sceptic, it’s clear that they are here to stay. They might never replace traditional currencies but will have their part to play in the world of finance.
However, Caroline Wylie, at Scotcoin tells us that the rise in Bitcoin has had a profound effect on the very nature of Bitcoin. Increased transaction charges are pushing up the cost of working in cryptocurrencies – as she says: “Your cup of coffee at £3 looks rather different when it becomes £7 by the time you pay for it. Why would you pay such a high premium just to use Bitcoin as a currency? It makes smaller transactions completely uneconomic.”
Bitcoin Transaction charges
Why are the charges so high? It’s down to the success of Bitcoin. This has led to a steep increase in the number of transactions. The way Bitcoin verifies those transactions requires rewards for the miners who do the work – they get paid in Bitcoin, so the more transactions there are, the more miners are needed and transaction fees go up.
The standard charge for a transaction is 0.0005 BTC or 0.50 cents at $1,000 per BTC. This number can fluctuate depending on how fast you want the transaction to happen.
However, today, with Bitcoin over $11,000, even if the standard charge is around $3.50 it will require 99 blocks to process and confirm the transaction. 99 blocks is the equivalent of up to 17 hours. If you want the transaction to be faster you’re looking at:
0.0006 BTC or $4.20 for 15 blocks
0.0007 BTC or $4.90 for 2 to 5 blocks
The alternative – Scotcoin
Scotcoin intends to move from the Bitcoin blockchain to its own permissioned blockchain to remove the those high transaction charges and speed up how fast those transactions are confirmed. The new blockchain can deal with transactions in seconds with a cost that’s only a very small fraction of the charge one would pay with the Bitcoin blockchain. So not only is it cheaper, it’s faster making retail use of cryptocurrencies a reality.
Scotcoin has already done a small trial of using digital currencies to buy beer in the Arlington Bar in Glasgow. And initial tests on the new blockchain are producing exciting speeds. More updates soon.
About the author:
Scotcoin is a cryptocurrency established in 2014 by Derek Nisbet, a Scottish fintech entrepreneur. It currently operates on the Bitcoin blockchain using the Counterparty protocol and has a market value of $25 million USD placing it in the top 200 of global crypto currencies as measured by the USD value.
In 2016 all intellectual property associated with Scotcoin was acquired from Nisbet by Scottish fintech investors, David Low and Temple Melville.
The investors’ desire is for the Scottish Government to adopt Scotcoin as the country’s unofficial crypto currency. It is acknowledged that currency is not a devolved responsibility whilst Scotland remains part of the UK. Scotcoin could only become an official currency if Scotland was independent of the UK or current legislation was changed.
What’s the value of fintech?
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Improvements to financial inclusion
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Enhanced customer experience offerings
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Greater transparency
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Modernised security and compliance solutions
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Additional support and guidance.
Fintech – what does the future look like?
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a strong understanding of current business operations
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a keen awareness of the signals of change
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ability and appetite for change and understanding of the potential barriers
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aligning business objectives to the fintech strategy
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innovation activity focused on large scale paradigm shifts as well as incremental improvements.
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What will we be famous for?
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What role(s) do we want to play in our customers’ lives?
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Where should we play?
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How can we win?
Why a London based fintech chose to grow in Scotland
David Brown, Co-founder & Chief Product Officer at Previse, spoke to us about the reasons behind the company’s expansion in Scotland.
It was first and foremost a very early meeting with the Datalabs that triggered the interest of the senior management team.
With a highly skilled workforce and a huge amount of new talents fresh out of world class universities, Scotland appeared to be the ideal place for Previse to locate, develop and recruit talent in data science with an ambition to use artificial intelligence technology to fix global trade finance.
Previse are still growing their presence in Scotland helped by Scottish Enterprise who awarded them a significant grant in order to support the company’s hiring strategy.
Clockwise, the co-working space in Glasgow, currently hosts the first Scottish recruits. Datalabs are still heavily involved as their R&D partner.
Previse is also working with the leading Scottish universities to disrupt trade finance by bringing data together with artificial intelligence.
David added that the required skills were “in short supply, but, by investing in developing these talents, Scotland can become a destination of choice and lead the way in providing high quality and high paying jobs in this sector.”