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.
The Rise of Digital Wallets
Season 4, episode 9
Listen to the full episode here.
In this episode of the Fintech Scotland podcast, host Mickael Paris discusses the rise of digital wallets with guests Tim Sabanov, Maxim Galash, and Bill Buchanan. The conversation explores the definition of digital wallets, the key drivers behind their rise, the role of digital identity, and the impact of regulation. The guests highlight the importance of education and strong use cases for mass adoption, as well as the potential of digital wallets to address financial inclusion for the unbanked population.
UK-Wide Innovation Challenge Launches, Transforming Customer Outcomes and Driving Innovation
FinTech Scotland, SuperTech (West Midlands) and eight industry collaborators are announcing the launch of a new innovation challenge aimed at enhancing consumer outcomes with technology and data.
Industry collaborators NatWest, Lloyds Banking Group, Equifax, PwC, Barclays, Tesco Bank, Secure Trust Bank and Dudley Building Society have come together for this innovation call, and the programme is focused on Consumer Duty Outcomes. Fintech firms from across the globe are invited to apply by the deadline of the 25th of October 2024. Successful applicants may be eligible for a £50,000 grant to further develop their solutions.
The challenge focusses on the best use of data and data analytics to enable greater understanding of consumers and in turn optimise outcomes. It invites enterprising tech businesses to develop and showcase data led tools and services which can support Financial Services organisations to meet their Consumer Duty requirements and in doing so continue to drive positive outcomes for customers across the UK.
This is the third innovation call to be launched through FinTech Scotland’s Financial Regulation Innovation Lab (FRIL). FRIL highlights real-life industry challenges and fosters a non-competitive environment that encourages collaboration among leading firms to explore cutting-edge solutions and drive sector innovation and in turn maximise customer outcomes.
A notable addition to this call is a partnership between FinTech Scotland and SuperTech (West Midlands), an organisation focused on advancing technology in financial services across the Midlands. Based in Birmingham, SuperTech promotes innovation to stimulate economic growth in the UK’s largest regional economy by collaborating with SMEs, corporates, and educational institutions. This relationship underscores the impact of cluster leadership throughout the UK
The innovation call programme will feature expert support from leading academics and researchers at the University of Glasgow, University of Strathclyde and University of Warwick who will contribute applied research to accelerate the onboarding of innovation. The programme will conclude with a showcase day in Glasgow on the 21st of January 2025, where participants will present their solutions.
Nicola Anderson, CEO of FinTech Scotland, commented:
“The new Consumer Duty regulation represents a positive development for the financial services industry and this innovation call will play a crucial role in ensuring that organisations can harness innovative solutions to meet their regulatory obligations while delivering real value to consumers.”
Hilary Smyth Allen, Executive Director SuperTech, commented:
“By joining the FRIL innovation call, we are adding greater diversity and representation of the financial services sector to innovate and collectively learn such that more of the UK’s citizens are ultimately better serviced.”
Fraser Wilson, Regional PwC Regional Leader for Financial Services, commented
“Embedding optimal consumer outcomes across the financial sector is not just a regulatory requirement but is fundamental in building transparency and trust across our industry. PwC is delighted to be supporting this challenge which enables responsible innovation with consumers at the heart”
Will Kerr, Head of Good Customer Outcomes, NatWest Group, commented
“This challenge is a great opportunity to harness fintech innovation, and apply that in how we support customer outcomes at every stage of their financial lives”
Robert McKechnie, Head of Product, Equifax commented
“As a data-led business, we see consumer duty as an opportunity to leverage insights in real time, driving smarter, more personalised solutions which will help to enable good consumer outcomes. This innovation challenge allows us to explore fintech solutions that not only support regulatory requirements but also improve customer experience”
Bryony Robertson, Conduct & Compliance Risk Specialist, Lloyds Banking Group commented
“LBG is excited to join the Financial Regulations Innovation Lab on the topic of Consumer Duty. This initiative aligns with our purpose of helping Britain prosper and provides an excellent opportunity for us to work with industry partners, fintechs and researchers to develop and explore innovative ways to balance the compliance with regulation and improving customer outcomes”
Applications to the challenge are open and more information can be found here
Can Generative AI deliver real robo advice?
Season 4, episode 8
Listen to the full episode here.
In this episode of the Fintech Scotland podcast, host Mickael Paris discusses the intersection of open finance and generative AI with industry experts. The conversation explores the potential of generative AI to provide personalized financial advice, the regulatory challenges that accompany these innovations, and the importance of maintaining consumer trust in AI-driven financial services. The guests share insights on the evolution of robo-advice, the future of financial services, and the role of regulation in fostering innovation while ensuring consumer protection.
Scottish Fintech Cluster’s New Home Unveiled as Annual Festival Begins
Scotland’s FinTech Cluster celebrated the official opening of the Fintech Ward in the heart of the newly opened Edinburgh Futures Institute (EFI) in Edinburgh, with an event that also marked the launch of the much-anticipated FinTech Scotland Festival 2024.
FinTech continues to grow in Scotland with 235 fintech firms now working in Scotland, a 23% increase in the last 3 years. These businesses continue to attract investment with a 26% increase 2024.
Edinburgh has long had an established fintech foothold. The fintech ward at the EFI further advances the opportunity for accelerated growth. The facilities connect business and the latest research and interdisciplinary innovations.
Business Minister Richard Lochhead said:
“Scotland has a long and rich history in financial services, and is now a leading player in cutting edge fintech – a strategically important sector in the 21st century, playing a key role in securing economic growth and jobs.
“The opening of the Fintech Ward at EFI and the launch of the FinTech Scotland Festival are clear signals of our continuing leadership in fintech innovation, further strengthening Scotland’s position as a global fintech hub.”
The evening, brought together key players from the Scottish Fintech cluster, including representatives from established financial institutions, fintech startups, academics, and leading industry figures.
Nicola Anderson, CEO of FinTech Scotland, emphasised the importance of the festival, noting:
“This year’s festival will showcase Scotland’s vibrant fintech ecosystem and facilitate meaningful connections between innovators, financial firms, academics, and international stakeholders around the key priority areas detailed in the UK Fintech Research and Innovation Roadmap that we first published in 2022.”
Kev Dhaliwal, Interim Director of EFI, commented on the institute’s role:
“The Edinburgh Futures Institute was created to drive collaboration across disciplines, sectors, and industries, providing a space where ideas can flourish, and innovations can thrive. EFI is not only a home for fintech but also for education, data science, culture, and public policy. It offers a cross-sectorial approach to addressing the complex challenges of the future.”
The FinTech Scotland Festival 2024, running between the 25th of September and the 4th of October, will feature a series of events aimed at highlighting cutting-edge fintech innovations, and driving forward the fintech cluster in Scotland and the fintech movement around the globe. The festival will bring together local and international thought leaders, businesses, and innovators to explore the latest trends, technologies, and opportunities in payment, financial regulation, Open Finance and Climate.
For more information about the FinTech Scotland Festival, please visit www.scotlandfintechfestival.com
For more details about the Edinburgh Futures Institute, visit https://efi.ed.ac.uk/.
Photo: Business Minister Richard Lochhead and Nicola Anderson, CEO at FinTech Scotland
BlackRock joins FinTech Scotland supporting Fintech Innovation for a New Era in Finance
BlackRock, the leading global investment manager, announced it was joining FinTech Scotland, the cluster management organisation for the fintech sector in Scotland. The announcement comes as BlackRock continues to develop local knowledge and talent as it expands in Scotland.
The ambition aligns with the FinTech Scotland Research and Innovation Strategy, focused on shaping the future of finance through fintech and technology. Through this partnership BlackRock and FinTech Scotland will collaborate on innovation and solving difficult problems through data and technology, helping more people experience financial wellbeing.
BlackRock joins a fintech cluster that is recognised as a centre of excellence in fintech innovation through a committed industry driven to advance the fintech opportunity. The Cluster is rich and diverse with over 235 fintech SME, 35 established financial and professional services institutions, global technology enterprises, world-class universities, regulators and a supportive public sector.
BlackRock’s deep expertise in technology and investment management continues to add to the experience across the FinTech Scotland Cluster and confirms its plans for further growth in Scotland.
Scott Walker, Managing Director, Co-head of BlackRock’s Edinburgh office, said: “We are excited to join with FinTech Scotland and its dynamic fintech cluster. We’re looking forward to working with peers and the industry in exploring key themes that are critical to the future of financial services and important to our clients. BlackRock has a long history in Edinburgh and our partnership with FinTech Scotland demonstrates our ongoing commitment to the local market, in addition deepening our relationships in this growing sector.”
Nicola Anderson, CEO of FinTech Scotland, said: “The collaboration with BlackRock is a testament to the strength and international appeal of the Scottish fintech cluster. Thanks to the collective innovation and technology expertise across in Scotland, we will continue to drive meaningful change and fintech evolution that will address some of the most pressing challenges in the financial industry today.”
Understanding MiCA Sustainability Compliance: How Zumo’s New Feature Simplifies the Process
Zumo, the B2B digital assets infrastructure provider, has introduced a new feature that will change the way crypto-asset service providers (CASPs) in the European Union (EU) manage sustainability compliance. The new addition to Zumo’s Oxygen product helps CASPs adhere to the upcoming sustainability reporting requirements under the Markets in Crypto-Assets (MiCA) regulation.
MiCA, aims to create a consistent framework for crypto-assets across the EU. It includes a range of obligations for CASPs. One such obligation, which many CASPs appear to have overlooked, pertains to the new sustainability indicators drafted by the European Securities and Markets Authority (ESMA). These indicators measure the environmental impact of crypto-assets offered by CASPs, a requirement that must be addressed by 30 December 2024. Industry data suggests that over 80% of CASPs are unaware of this looming deadline, placing them at risk of substantial fines.
MiCA Article 66 mandates that CASPs — including exchanges, brokerages, custodians, and trading firms — operating within the EU or planning to provide services to the EU must have website disclosures detailing the environmental impact of their crypto-assets. Failure to meet this requirement could result in penalties of at least €5 million or 5% of the company’s annual turnover.
Zumo’s Innovative Solution
Zumo’s latest feature, integrated into the Oxygen product, is designed to help CASPs effortlessly meet these new sustainability reporting requirements. The solution provides access to MiCA-compliant sustainability metrics for listed crypto-assets. It leverages high-quality data from the Crypto Carbon Ratings Institute (CCRI), a strategic partner of Zumo, to build upon Zumo’s ongoing efforts to align digital asset activities with net-zero principles.
One of the key benefits of this new feature is the ability to auto-generate MiCA-compliant website disclosure reports, making it easier for CASPs across the EU to stay on top of their sustainability obligations.
Nick Jones, Founder and CEO of Zumo said “MiCA’s sustainability requirements are going live to a tight deadline, and bring with them complex data questions as well as potentially hefty fines.[…] It’s become clear that CASPs across Europe simply aren’t ready. In response, we’ve taken another important step on our sustainability journey to add the indicators that will enable service providers to comply with current and future sustainability compliance requirements. With our MiCA solution, CASPs will be able to access a single interface that helps them cut through all the complexity associated with pulling data together, formatting an appropriate template, and providing the output that ESMA is looking for.”
A Pioneer in Sustainable Digital Assets
Zumo has established itself as a leader in sustainable digital assets, with a commitment to shaping a future where financial institutions can operate within a sustainable, compliant framework. The company’s efforts have been recognised by prestigious awards such as the Fintech Finance Awards, the City AM Awards, and the Scottish Financial Technology Awards.
Beyond this, Zumo was a member of the World Economic Forum’s Crypto Sustainability Coalition, which explored how blockchain technologies can support climate action. The company also signed the Abu Dhabi Sustainable Finance Declaration and co-founded the Emerging Technologies Sustainability Taskforce (ETST).
Photo by Kervin Edward Lara: https://www.pexels.com/photo/white-wind-turbines-on-gray-sand-near-body-of-water-3976320/
PropEco Secures £275,000 Seed Funding to Revolutionise Property, Insurance, and Mortgage Lending with Groundbreaking Tech
Glasgow-based technology company PropEco has secured £275,000 in seed funding to accelerate its mission of future-proofing the property industry through advanced data and analytical tools. The funding will support PropEco’s efforts to address evolving social and environmental trends, including climate change, and their impact on property, ultimately laying the groundwork for international expansion over the coming year.
The funding round was led by London-based venture capital firm Symvan Capital, known for its focus on early-stage, high-growth technology companies. The University of Strathclyde’s Inspire Entrepreneurs Fund also contributed, highlighting growing recognition of the value of integrating environmental and social factors into property, insurance, and lending decisions.
A Platform for Modern Challenges
PropEco’s AI-powered platform offers a comprehensive assessment of properties, focusing on three key areas: transition risks related to climate change, physical risks from environmental shifts, and wellbeing impacts. It constantly analyses data from thousands of sources, many of which are proprietary, to provide detailed assessments of critical factors such as flood risk, air quality, and opportunities for green retrofitting.
This amount of data is leveraged to deliver a range of products, including an API, portfolio assessment services, browser-based risk assessment tools, and property reports. These tools enable clients to make better-informed decisions, offering time and cost savings, improved risk management, enhanced regulatory compliance, and improved customer retention.
Chris Hardman, Founder and CEO of PropEco, said:
“Symvan Capital and the University of Strathclyde’s investment underscores the importance of integrating environmental and social factors into property-related decisions. The risks posed by trends like climate change are becoming increasingly evident, and PropEco is well-positioned to lead in climate-conscious property technology.”
He further explained:
“Traditional methods of assessing risk in property are no longer equipped to handle the complexities of modern environmental and social challenges. PropEco’s data-driven approach offers property-level insights that empower stakeholders to make smarter, more resilient decisions.”
Well-Positioned for Growing Market Demand
As awareness of climate change’s risks continues to rise, the demand for climate-conscious technology within the property market is also growing. PropEco’s platform is designed to meet this demand by providing property professionals, lenders, and insurers with actionable data to manage emerging risks effectively.
Investment Manager Allen Xu of Symvan Capital, said:
“PropEco’s platform addresses several critical data challenges in today’s rapidly evolving market. By enabling smarter decision-making, PropEco is helping shape a more resilient future for the property sector, aligning with our own mission to support innovative founders passionate about solving current problems with vision and determination.”
Anne Henderson, Interim Head of Investment at the University of Strathclyde, commented:
“As a socially progressive institution, Strathclyde is committed to supporting entrepreneurs who are making a positive impact. Our partnership with PropEco through the Inspire Entrepreneurs Fund reflects our belief in their mission to create a sustainable future for the property market.”
For more information, visit PropEco’s website. For interview requests with Chris Hardman or further information, contact PropEco at info@propeco.io.
Finalists unveiled for the 2024 Scottish Financial Technology Awards
Scotland’s leading technology media & events company, Digit, has announced its finalists for the 2024 Scottish Financial Technology Awards, part of the Fintech Scotland Festival. This year, Digit received over 90 entries from across Scotland for its 12 award categories.
Below are the finalists for the 12 categories that celebrate the innovation and talent within Scotland’s Fintech clusters:
Best Fintech Collaboration 2024
Lloyds Banking Group/GoCodeGreen
Scottish Widows/Appointedd
Miconex/GiftRound
Best Use of Data/AI
Atto
Inicio AI
Level E Research
Predictiva
Best Startup/New Entrant 2024
loveelectric
Redeem Technologies
Renti Rewards
Gigged.AI
First Carbon
Climate & Environmental Impact 2024
GoCodeGreen
Snugg
loveelectric
Zumo
First Carbon
Digital Transformation 2024
Ionburst
Appointedd
Soar
Citizens Advice Scotland
Evangelist 2024
David McLeay – Lloyds Banking Group
Pardeep Cassells – Access Fintech
Colin Frame – Stellar Omada
Amirreza Sarencheh
Financial Service Innovation 2024
JP Jenkins
NatWest
Simple Financial Planning
TSB
Financial Technology Partner 2024
Stellar Omada
Scott Logic
InfinitX
Approov Limited
Forrit Technology Limited
Fintech of the Year
BR-DGE
LendingCrowd
Aveni.ai
AutoRek
Predictiva
Encompass Corporation
Outstanding Leader
Colin Frame – Stellar Omada
(Prof) Christine Bamford – Womenscoin
Maysara Hammouda – Predictiva
RegTech Innovation 2024
RegHub
ALMIS International
TrueDeploy
AutoRek
HAELO
Social Impact
MoneyMatiX
Inicio AI
Lightning Reach
Grand Bequest
Citizens Advice Scotland
Congratulations to the finalists. We’re looking forward to The Scottish Financial Technology Awards ceremony on the 25th of September to celebrate Scotland’s fintech cluster. Don’t forget to book your table to join us on the day.
The Fintech Summit and the Awards mark the start of the FinTech Scotland Festival. Check the full programme.
Scottish Fintech Level E Research Leads the Charge in Satellite Data Innovation
Satellite Data for Smarter Decision-Making
Level E Research develops AI-driven solutions that help organisations make better, data-informed decisions. With this new funding, the company aims to extend its capabilities by integrating satellite data into its existing AI frameworks. This integration will allow businesses to benefit from real-time data that can significantly enhance their strategic planning, risk management, and operational efficiency.
The use of satellite data offers a wealth of possibilities, from monitoring environmental changes to optimising supply chains. For example, by analysing satellite imagery, businesses can gain insights into everything from agricultural yields to urban development trends, enabling them to make more informed decisions that are both timely and impactful.
Advancing Financial Services through Satellite Insights
Level E Research’s specialises in the financial services sector, where their AI solutions are already helping clients navigate complex market conditions with greater confidence. The addition of satellite data to their analytical toolkit is expected to revolutionise how financial institutions assess risk and predict market movements.
For instance, satellite data can provide valuable information on economic activities, such as the level of industrial output in a particular region or the state of infrastructure development. These insights can be crucial for financial institutions looking to invest in emerging markets or assess the impact of natural disasters on their portfolios.
A Collaborative Effort for Maximum Impact
The success of these satellite data pilots depends on collaboration across industries. By working with other organisations in the pilot program, Level E Research will be able to refine its models, ensuring that the solutions developed are both practical and scalable.
Moreover, the insights gained from these pilots are expected to have a ripple effect across various sectors, from agriculture to insurance, demonstrating the broad applicability of satellite data when combined with cutting-edge AI.