Consumer Duty and Innovation with NatWest
Season 4, episode 12
Listen to the full episode here.
In this episode we’re diving into the Consumer Duty Regulation and the opportunities that outcomes-based regulation opens for innovative solutions that can enable financial services to maximise positive outcomes for all customers and in turn create economic and social growth.
The Financial Regulation Innovation Lab has launched its third innovation challenge focusing on that topic with 14 financial services partners ranging from banks, building societies and credit unions.
NatWest have been a keen supporter of this challenge seeing to harness the brightest ideas in fintech and to bring industry together on this key topic.
Today, we’ll explore what this means for financial services organisations, for the millions of people across the country who are customers of Financial Services firms and how innovation and ambitious fintechs are already making a difference.
With:
Will Kerr, Head of Customer Outcomes
Samantha Brand Customer Lead Innovation & Partnerships
Scottish fintech GiftRound’s Wins the Great British Entrepreneur Awards
GiftRound was named the Innovation Entrepreneur of the Year at the 2024 Great British Entrepreneur Awards (GBEA) thanks to its remarkable contributions to the group gifting market, making the processes more inclusive and efficient.
A Win for GiftRound and Scottish Entrepreneurship
Held at the Grosvenor House in London, the awards ceremony brought together top innovators and changemakers from across the UK. GiftRound’s recognition was a proud moment for the company but also for Scotland’s vibrant FinTech community.
Founder and CEO Craig Forsythe shared his thoughts:
“It was great to attend the Great British Entrepreneur Awards in London and be in a room full of amazing entrepreneurs representing such a broad spectrum of industries. To have GiftRound recognised as a winner is an amazing achievement and recognition of our journey and the amazing efforts of our dynamic team who are passionate about making group collections easier.”
This prize reflects GiftRound’s innovative approach to solving everyday challenges in group gifting—creating a seamless, secure, and inclusive platform for managing group collections. GiftRound puts customers at the centre of the experience, setting a new benchmark in the sector.
Recognising the Impact of Entrepreneurs
The GBEA, often described as “The Grammys for Entrepreneurship,” is in its 12th year of honouring individuals and businesses that drive innovatio.
Francesca James, founder of the awards, emphasised the significance of this recognition:
“This year’s winners collectively generate over £3 billion in turnover and employ over 20,000 people. These extraordinary individuals are not only transforming industries but also uplifting communities and inspiring the next generation of business leaders.”
What’s Next for GiftRound?
The GiftRound team remains focussed on expanding their impact, enhancing user experiences, and driving innovation in the group gifting space. They’ll continue to empower communities and bring people together through technology.
Lloyds Banking Group Partners with Scottish FinTech Inbest to Launch New Benefits Calculator
Lloyds Banking Group has partnered with Scottish fintech Inbest to launch a new tool aimed at helping millions of UK households access unclaimed benefits. The benefits calculator, now available in the Lloyds mobile banking app, is designed to bridge the gap between people and the £23 billion of unclaimed benefits such as Universal Credit and council tax support.
How It Works
The calculator is simple and intuitive. Users start by answering six quick questions about their household, income, and living situation. Based on this initial input, the tool provides an estimate of potential benefits they might be entitled to. For a more detailed analysis, users can complete a five-minute questionnaire to receive a final summary of their benefits eligibility.
If eligible, the calculator doesn’t just stop at telling users what they might claim; it also provides direct links to begin the application process. Additionally, the tool highlights potential grants for home improvements or energy efficiency upgrades.
Tackling a National Problem
Lloyds Banking Group’s initiative is a direct response to the estimated eight million UK households missing out on financial support. With the cost-of-living crisis intensifying, the “More Money in Your Pocket” hub in the Lloyds app aims to provide tangible assistance to those who need it most.
Since its soft launch, the benefits calculator has already helped thousands of users identify new sources of financial support. The tool is available on both iOS and Android devices, ensuring broad accessibility for Lloyds customers.
A Collaboration for Impact
This innovative solution was developed in partnership with Inbest, a leading Scottish fintech specialising in financial inclusion technology. Inbest’s expertise in building user-friendly tools to simplify financial complexity was instrumental in creating the benefits calculator.
FinTech Scotland, which supports collaborations like this, continues to highlight the power of partnerships between established financial institutions and fintech innovators. By joining forces, Lloyds Banking Group and Inbest are leveraging technology to deliver impactful financial solutions for everyday consumers.
“We’ve launched Benefit Calculator, helping customers to identify the benefits they may be eligible for and providing clear guidance on making a claim.”
This partnership with Inbest is a testament to the growing importance of fintech collaborations in addressing societal challenges. By combining Lloyds’ reach and resources with Inbest’s innovative capabilities, this initiative marks a significant step towards greater financial inclusion across the UK.
The landscape of financial fraud in the UK
Season 4, episode 11
Listen to the full episode here.
This is the inaugural episode of a special FinTech Scotland Podcast Series, co-hosted with with Charlotte Moir fromBT.
This episode highlights the launch of the new FinCrime Innovation Programme, tackling the pressing issue of fraud and financial crime.
We’ll unpack the impact of fraud in 2023, with £460 million lost to APP fraud in the UK, and discuss the implications of the new PSR mandatory reimbursement scheme introduced in October 2023. This landmark change enforces stricter rules within Faster Payments, ensures a shared responsibility between payment firms, and provides enhanced protections for customers, especially the vulnerable.
Our guests bring diverse insights into the fight against fraud:
• Lauren Cassells, Research & Programme Innovation Manager at FinTech Scotland, discusses the collaborative efforts of the FRIL initiative and its industry-wide engagement.
• Brian Webb, Chief Security Officer for Consumer at BT, shares BT’s strategies in combating fraud and fostering innovative partnerships.
• Paddy O’Keefe, Economic Crime Public & Private Partners Manager at Virgin Money, explores Virgin Money’s initiatives to ensure comprehensive fraud reporting and prevention.
Financial firms, Telcos and Technology leaders launch a collaborative programme in International Fraud Awareness Week to tackle financial crime across the UK
As part of International Fraud Awareness week, 11 industry partners including BT, HSBC, Morgan Stanley, Abrdn, TSB, Virgin Money, Lloyds Banking Group, Barclays, Fujitsu, Equifax and Dudley Building Society are collaborating to launch an innovation programme focused on addressing financial crime.
FinTech Scotland, SuperTech West Midlands, and Greater Manchester Combined Authority, brought together through the Innovate UK Innovation Accelerators programme, will lead the UK wide innovation call aiming from within the Financial Regulation Innovation Lab to tackle financial crime challenges.
Innovators worldwide are invited to apply to join the programme by 13 January 2025. Successful applicants will benefit from direct support from industry leaders, an unparalleled opportunity to refine and test their propositions within a robust framework. Participants will also gain insights through exclusive roundtables, masterclasses, and workshops led by leading academics from the University of Glasgow, University of Strathclyde, Aston University, and Birmingham City University.
This initiative builds on the momentum of three previous innovation calls launched this year by FinTech Scotland through its Financial Regulation Innovation Lab (FRIL). By publishing industry-led challenge statements, FRIL invites innovators to develop new solutions to address real world challenges. By focussing on non-competitive challenges, FRIL encourages collaboration across established institutions, delivering meaningful change in financial services and other sectors.
In addition, this fourth call further expands the geographical reach of FRIL. Having expanded recently on the call relating to Consumer Duty, launched in September, with the partnership with SuperTech West Midlands, the financial crime programme welcomes the addition of Greater Manchester Combined Authority to cement the development of FRIL as an asset for the whole of the UK. As the three geographies with Innovation Accelerator pilots, part of the government’s commitment to place-based innovation investment through Innovate UK, part of UKRI, the partnership is working to demonstrate the power of this approach and that of cluster-led innovation activity relevant to advancing the UK’s position in a priority sector
This collaboration will deepen FRIL’s impact in tackling financial crime, with a specific focus on five use cases provided by industry.
The call will conclude on 20 March 2025 with a showcase event, offering innovators the chance to present their solutions to a broad range of senior stakeholders.
Applications close on 13 January 2025. For more information and to view the programme’s use cases, please visit https://www.fintechscotland.com/what-we-do/financial-regulation-innovation-lab/financial-crime/
Nicola Anderson, CEO at FinTech Scotland said:
“FRIL is all about the power of collaboration, bringing together diverse expertise to deliver better outcomes for all. By partnering with other UK regions, we are strengthening the UK’s position as a leader in financial innovation, connecting the best minds and resources to address some of the industry’s toughest challenges.”
Hilary Smyth-Allen, Executive Director SuperTech:
“Joining this latest thematic call with FRIL, we are building on the strong base of cross-regional collaboration of innovation endeavour. As the partnership expands, the undoubted winner is the UK; this time in tackling some of the biggest challenges facing industry and citizens as result of financial crime”
Paul Taylor, Managing Director, BT Business:
“By taking part in FRIL, BT will continue to co-innovate with industry partners on key challenges and priorities in tackling Financial Crime. It will allow us to explore FinTech solutions and harness innovation to ensure our customers and businesses are protected today and prepared for tomorrow.”
Paddy O’Keefe, Public Private Partnerships Virgin Money:
“Virgin Money is committed to tackling financial crime, and technology has a key role to play in effectively achieving that. Following the success of FRIL’s ‘simplifying compliance with AI’ programme, we’re excited to support the new ‘innovation to address financial crime’ programme and look forward to engaging with partners to help combat this important issue.”
Ali Fellows, Head of Compliance & Financial Crime, Dudley Building Society:
“Financial Crime prevention is something I am extremely passionate about, having worked in the financial services industry in this area for over 20 years. We have a huge part to play in this, and collaborative working is fundamental in helping drive the fight and shape the future. I am really looking forward to working with SuperTech WM and Fintech Scotland to see how innovation can help develop solutions to help make it harder for criminals to abuse our society and tackle the harm that financial crime causes.”
Robert McKechnie, Director, Credit Products and Strategic Alliances at Equifax UK, said
“This call aligns seamlessly to Equifax’s commitment to strengthen the financial services’ sector in their responding to criminal activities i.e. Identity and Fraud thus meeting their regulatory requirements. The ability to leverage innovative and emerging applications of technology plays a crucial role in the identification and disruption of financial crime and we are excited to be engaging across the FRIL programme to support the development of these solutions.”
Kwaku Osafo, Head of Economic Crime Prevention & MLRO, Insurance, Pensions & Investments Risk, Lloyds Banking Group said:
“Lloyds Banking Group are delighted to be participating in this unique collaborative programme focused on strengthening cross sector efforts to tackle financial crime and fraud. We are looking forward to engaging with industry, academia and regulatory colleagues to explore and harness cutting edge fintech solutions.”
FRIL is a project funded by the Glasgow City Region Innovation Accelerator programme Led by Innovate UK on behalf of UK Research and Innovation, the pilot Innovation Accelerators programme invested £100m in 26 transformative R&D projects to accelerate the growth of three high-potential innovation clusters – Glasgow City Region, Greater Manchester and West Midlands. This is a new model of R&D decision making that empowers local leaders to harness innovation to drive regional economic growth, help attract private investment and develop future technologies.
Open Finance and Carbon Neutral Banking
Recent industry insights show that banks still face significant constraints in measuring indirect Green House Gas (GHG) emissions owing to data limitations and a lack of harmonised methodologies.
At the same time, banks and other financial institutions hold large volumes of consumer data that can be leveraged to estimate GHG emissions albeit financial transaction data are privately owned with restricted access. This paper discusses how an open finance framework can be used to aggregate consumer transaction data across multiple financial products to compute carbon footprints.
It highlights a step-by-step approach to carbon footprint estimation and discusses the consideration for using microdata for emission computation.
CBI and Zumo Partner to Track Sustainability in Digital Assets
Commercial Bank International (CBI), a UAE-based bank, has entered into a strategic partnership with Scottish fintech Zumo. This collaboration will focus on exploring methods to track the sustainability of digital assets—a step in CBI’s ongoing work to bring innovative, environmentally conscious digital solutions to its clients.
The UAE is rapidly positioning itself as a centre for digital asset growth and regulatory clarity, with projections suggesting that the nation’s digital asset market will grow from $453.20 million in 2024 to $616.80 million by 2028. As digital assets become a more established part of the financial landscape, both CBI and Zumo aim to contribute to a framework that prioritises transparency and environmental awareness.
Giovanni Everduin, Chief Strategy & amp; Innovation Officer at CBI, commented on the partnership:
“Our partnership with Zumo marks a significant milestone in CBI’s ongoing commitment to innovation and sustainability. Aligned with our vision of partnership driven innovation, we look forward to collaborating with Zumo to become one of the first banks in the world to provide carbon footprint insights with carbon offsetting for digital assets. This revolutionary capability will ensure
that, as digital assets become further embedded within the financial ecosystem, customers and institutions have the required tools and data to ensure their sustainability goals are tracked and achieved.”
For Zumo, the partnership represents an opportunity to extend their focus on sustainability within the digital asset sector.
Clark Povey, Zumo’s Chief Operating Officer, shared his perspective:
“We’re delighted to announce our strategic partnership with Commercial Bank International, one of the UAE’s most innovative banks, headquartered in Dubai. Our collaboration with CBI will see Zumo’s pioneering digital assets and blockchain technology complement CBI’s financial expertise and innovative approach to drive sustainability. Zumo solves the biggest challenges in digital
assets for financial institutions by providing business-critical technologies to navigate the rapidly evolving digital asset landscape, and with Zumo’s technology and leadership in sustainability of digital assets, the exciting journey ahead is just beginning..”
Zumo’s platform is designed to help financial institutions address sustainability challenges within digital assets. It provides tools to meet MiCA’s sustainability disclosure requirements in the EU, simplifying how crypto asset service providers
(CASPs) can publish environmental sustainability indicators for distributed ledgers. With these tools, CASPs can provide transparent, accessible data on the environmental impact of their digital assets.
Zumo is committed to decarbonising digital assets and plays and important role as an early signatory of the Crypto Climate Accord and the Abu Dhabi Sustainable Finance Declaration.
Open Finance – What’s next?
Season 4, episode 10
Listen to the full episode here.
Open Finance is set to unlock a new level of transparency, accessibility, and control for consumers, businesses, and financial institutions. But what does this mean for the future of the financial ecosystem, and how will key players navigate the opportunities and challenges that come with it? We discuss what Open Finance really means, the progress made so far, and what the future holds for consumers, fintechs, and traditional banks alike.
Guests:
Ezechi Britton – CEO at the Centre for Finance, Innovation and Technology (CFIT)
Jen Lothian – Founder at MyArk
Can Technology Transform and Simplify Regulatory Compliance?
At the recent Financial Regulation Innovation event in Glasgow, part of the FinTech Scotland Festival, hosted by Barclays and FinTech Scotland, experts, industry leaders, and academics discussed how new technologies are reshaping regulatory compliance.
Featured speakers included representatives from Barclays, the FCA, Morgan Stanley, Pinsent Masons, and leading fintech firms such as Amiqus, Aveni, Encompass, Exizent, Corlytics, Malted.Ai and docStribute. , providing diverse perspectives on the practicalities and potential of technology in this area.
AI as a Powerful Tool for Compliance
AI was discussed at length as a transformative tool that has the potential to streamline compliance processes while enhancing precision. However, implementing AI for regulatory purposes requires careful integration, especially within legacy financial systems. Without the right infrastructure, this transformation is challenging. Industry leaders highlighted that good data input is crucial to AI model reliability. As one speaker put it, “You get out what you put in” — a reminder that faulty data can compromise outcomes and increase risk.
Ensuring Privacy and Security in AI Applications
Privacy and security were recurring themes, with experts stressing the importance of keeping private data out of models (favouriting synthetic data) and creating “fail-safe” designs. This approach ensures that if errors occur, they aren’t catastrophic. For example, speakers from innovative tech firms presented privacy-enhancing technologies and zero-knowledge proofs, which allow companies to meet compliance requirements without exposing sensitive data.
Future Horizons: Advanced AI Models and Compliance
Next-generation AI models offer exciting possibilities for compliance by tackling more complex, ambiguous tasks over longer time frames. By expanding AI capabilities, the sector aims to unlock entirely new areas of automation and efficiency. However, this shift also requires that financial services firms cultivate higher levels of AI literacy across teams. According to one academic at the event, we are witnessing the “next wave of compliance innovation, requiring regulatory understanding and technical fluency in parallel.”
Regulatory Approaches: EU AI Act vs. UK Ecosystem Model
A panel discussion touched on the contrast between the EU’s AI Act and the UK’s ecosystem approach to regulation. The EU’s model is characterised by a “top-down” structure, while the UK leans toward a more flexible, “bottom-up” framework. The EU’s structured guidelines provide strict compliance benchmarks, while the UK’s adaptable ecosystem approach supports innovation by allowing firms more flexibility in their compliance methods.
Skills for the Future
As regulation and technology evolve together, the skills needed within compliance and risk teams will also change. Smaller, targeted language models are becoming popular for specialised tasks, complementing larger models. These smaller models allow for streamlined implementation and provide focused insights tailored to specific regulatory needs. In the coming years, the industry will likely see growing demand for professionals who can blend regulatory knowledge with AI and data literacy.
FinTech Scotland Celebrates ESG Innovation Success, Paving the Way for Job Creation and Industry Change
FinTech Scotland is excited to announce the winners of the “Shaping the Future of ESG in Financial Services” innovation call. This initiative, launched in June 2024 as part of the Financial Regulation Innovation Lab (FRIL) in collaboration with the University of Strathclyde and the University of Glasgow, aims to tackle critical data and technology challenges to enhance the integration of Environmental, Social, and Governance (ESG) factors in the financial services sector.
Challenge Partners for this initiative included Lloyds Banking Group, Morgan Stanley, Barclays, Phoenix Group, abrdn, HSBC, Virgin Money, EY, Sopra Steria, and Equifax. The participating firms worked collaboratively to identify seven key challenges where innovative solutions could drive meaningful impact.
Twenty fintechs were chosen to advance their solutions in partnership with 10 Industry Challenge Partners and universities. Over a three-month Innovation Process, teams collaborated closely with industry professionals developing and showcasing their innovations in the field of ESG.
Eight winners will receive funding to further develop their proposals. These winners have shown significant promise in tackling the ESG challenges highlighted by the FRIL Industry Challenge Partners. Moving forward, these fintechs will continue to refine their solutions with ongoing support and collaboration with industry and the Financial Regulation Innovation Lab
The winners are as follows:
GAIALENS: Greenwashing Analytics Solution enabling investors to assess the greenwashing risk of funds and companies.
SCOTT LOGIC: B Corp focussed on addressing data quality and reliability in greenwashing.
SICCAR: Secure solution architecture with a focus on reliability and resilience of ESG data.
ESG 360: An AI-Driven Platform using existing ESG Reports to produce a gap analysis for regulatory compliance that provides full audit capability.
CIENDOS: Delivering environmental data that underpins financial flows and validates environmental claims.
ESG DISCLOSE: An AI powered platform that offers AI-powered analytics, customised integration, real-time monitoring, and collaborative tools.
VERIFOXX: A data query engine enabling Industry to query the dataset of an investee/ borrower/ asset, to gain visibility on verified financed emissions
TEXPERTAI: An AI and data analytics platform specialising in social sustainability focussing on human capital, rights, and labour standards within the workforce and supply chains.
Nicola Anderson, CEO of FinTech Scotland, commented:
“The response to the ‘Shaping the Future of ESG in Financial Services’ innovation call has been outstanding. The level of engagement from both the fintech community and our Challenge Partners highlights the importance of collaboration in driving meaningful change. We are excited to see how the winning solutions will shape the future of ESG in financial services.”
Tom McFarlane, Partner at EY said:
“The winners of the Financial Regulation Innovation Lab’s ESG innovation challenge showcases the groundbreaking thinking that is critical to tackling today’s sustainable finance challenges. EY has a long-standing commitment to driving innovation in ESG, and we are proud to support these transformative ideas.”
Pauline Brown, Head of ESG Reporting, Finance at Morgan Stanley said:
“We are proud to support the ESG Innovation Challenge and congratulate the winners for their exceptional contributions. Their innovative solutions have the potential to help advance sustainability within the financial services industry. At Morgan Stanley, we are committed to fostering the kind of forward-thinking that drives meaningful progress in ESG.”
David Anderson, Environment and Climate Lead at Virgin Money said:
“We applaud the winners of FRIL’s ESG innovation call for their groundbreaking solutions, and their work will be instrumental in shaping the future of ESG practices within financial regulation. At Virgin Money, we are committed to supporting innovative approaches that drive environmental and climate sustainability across the industry.”
Jennifer Simpson, Head of Climate & ESG Risk at Lloyds Banking Group said
“We are delighted to have participated in FRIL’s ESG Innovation Challenge and extend our congratulations to the winners for their outstanding contributions. Their innovative solutions will support reshaping the ESG regulatory compliance landscape, promoting robust ESG practices across the industry. At Lloyds Banking Group, we remain committed to Helping Britain Prosper and supporting ESG innovation that tackles pressing challenges, paving the way for a more sustainable and resilient financial system.”
Kal Bukovski, Director of Academia and Research at Sopra Steria said:
“We are proud to have taken a key challenge sponsor role in FRIL’s ESG Innovation Call and extend our congratulations to the winners for their pioneering solutions. Their work underscores the critical role of digital innovation in driving sustainability across the financial sector. At Sopra Steria, we are committed to fostering technological advancements that not only enhance financial regulation but also contribute to a more sustainable future.”
Richard Nicol, Senior Product Owner at Phoenix Group said:
“We have been impressed by the quality of fintech solutions in FRIL’s ESG innovation call. Their forward-thinking solutions highlight the importance of integrating ESG principles into financial regulation. At Phoenix Group, we are committed to supporting initiatives that drive sustainable change and strengthen the industry’s approach to responsible finance and congratulate all the winners of this call.”
FinTech Scotland, SuperTech (West Midlands), University of Strathclyde and University of Glasgow and eight industry collaborators have recently announced the next innovation challenge from FRIL aimed at enhancing consumer outcomes with technology and data is currently live.
This new challenge involves Industry collaborators from NatWest, Lloyds Banking Group, Equifax, PwC, Barclays, Tesco Bank, Secure Trust Bank and Dudley Building Society. It focusses on Consumer Duty Outcomes. Fintech firms from across the globe are being invited to apply by the 25th of October. Successful applicants may be eligible for grant awards of up to £50,000 to further develop their solutions. Applications to the challenge are now open and more information can be found here
Led by Innovate UK on behalf of UK Research and Innovation, the pilot Innovation Accelerators programme invested £100m in 26 transformative R&D projects to accelerate the growth of three high-potential innovation clusters – Glasgow City Region, Greater Manchester and West Midlands. This is a new model of R&D decision making that empowers local leaders to harness innovation to drive regional economic growth, help attract private investment and develop future technologies.