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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.

When Finance Meets Real Life

The financial landscape is rapidly evolving, with a growing emphasis on integrating financial services seamlessly into consumers’ daily lives. A new report from Rise, created by Barclays and Rainmaking explores this evolution in their report, “When Finance Meets Real Life.” The report, released as part of The Innovation Spotlight Series looks at the convergence of finance and real-life applications, driven by technological advancements, economic pressures, and regulatory changes.

Key Drivers of Change

The report identifies several key drivers reshaping the financial sector:

  1. Economic Pressures: Rising inflation, the cost-of-living crisis, and increasing interest rates are making it harder for individuals and businesses to access credit. These challenges are pushing consumers to become more resourceful, while businesses are shifting focus towards sustainable growth rather than relying on abundant venture funding.
  2. Artificial Intelligence and Personalisation: AI is increasingly being adopted across industries, with nearly 18% of global venture funding in the first half of 2023 going to AI-related companies. AI’s potential to transform financial services is immense, particularly in areas like customer experience and regulatory compliance. Personalised financial services, powered by AI, are becoming crucial as consumers demand more tailored and context-specific offerings.
  3. Regulatory Catalysts: New regulations, such as the UK’s Consumer Duty and the EU’s Green Deal, are shaping the future of finance. These regulations aim to protect consumers and promote sustainability, while also driving innovation by setting higher standards for financial products and services.
  4. Embedded Finance: The embedded finance market, valued at $65 billion in 2022, is expected to grow significantly by 2027. This model, which integrates financial services into non-financial platforms, is revolutionising how consumers access banking services. Examples include the growth of Buy Now, Pay Later (BNPL) services and other point-of-sale financing solutions.

Thriving in a Seamless World

The report also highlights the growing consumer expectation for seamless financial experiences. The report discusses how embedded finance can help banks integrate services more naturally into everyday activities to reduce friction for users. The challenge for financial institutions is not just about offering these services but making them intuitive, timely, and relevant to each customer’s unique needs.

Personalisation and Consumer Engagement

Personalisation in financial services is still catching up compared to other industries. While consumers can personalise products like M&Ms or choose customised content on Netflix, financial services often lack this level of customisation. The report argues for a more sophisticated use of data to predict and respond to individual customer needs, creating a more engaging and relevant banking experience.

Making Money Talks Easier

The report highlights the importance of making financial discussions less intimidating and more accessible to consumers. With rising debt levels and financial stress, financial institutions need to provide empathetic support. This includes using AI and other technologies to simplify interactions and make financial advice more accessible.

Read the full report

Interested in getting notified of the next release?

From payments to banking to wealth management, innovation is moving along at pace, fueled by an evolving, digitally savvy customer base. The Innovation Spotlight Series explores themes and trends within the world of fintech, and how they can impact all our lives.

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Photo by cottonbro studio: https://www.pexels.com/photo/person-putting-coin-in-a-piggy-bank-3943716/

Breakthrough Data Innovations Take Centre Stage at the 7th Annual FinTech Scotland Festival

FinTech Scotland proudly announces the launch of the 7th Annual FinTech Scotland Festival, running from September 25th to October 4th, 2024.

This year’s festival promises to bring together the dynamic and collaborative Scottish fintech community, showcasing its remarkable growth, innovation, and energy. Attendees will engage in critical discussions on topics shaping the global fintech landscape.

Building on the success of previous years, Scotland will welcome over 2,000 fintech professionals and enthusiasts from Scotland, the UK, and around the world. The programme kicks off with the Fintech Summit at Dynamic Earth in Edinburgh on September 25th, organised by leading tech publisher Digit. This summit will pave the way for a series of insightful and forward-thinking discussions and presentations throughout the festival.

Spotlight on Data Innovations

The 2024 FinTech Scotland Festival will highlight data innovations revolutionising the fintech and financial industry, including AI, Distributed Ledger Technologies, Open Finance, and new data sources aimed at achieving ESG objectives. The festival will feature various events, round tables, and panel sessions designed to support the growth and development of fintech companies.

Nicola Anderson, CEO of FinTech Scotland, expressed her excitement:

“We are thrilled to launch the 7th edition of the FinTech Scotland Festival. Each year, the festival allows me time for reflection on the thriving nature of the Scottish fintech cluster and its achievements. This year”™s program is packed with events that will serve to inspire, educate, and foster collaboration across the industry.”

The FinTech Scotland Festival provides a unique platform for networking, learning, and innovation. It brings together industry leaders, startups, investors, and policymakers to discuss the latest trends and challenges in the fintech sector.

This year, Scottish fintech Appointedd, will be the official festival technology partner, providing their solution to allow attendees to book events. As official media partner, Digit will offer coverage of the festival through videos, articles and much more.

To explore events, register and get involved visit scotlandfintechfestival.com

FinTech Scotland announces the companies selected for its Second Innovation Call: Shaping the Future of ESG in Financial Services

The FinTech Scotland”™s Financial Regulation Innovation Lab has published the name of the companies selected for its second innovation call focused on shaping the future of ESG (Environmental, Social, and Governance) in financial services. This initiative has attracted innovative solutions from around the world dedicated to addressing the crucial ESG challenges faced by the financial sector.

The Financial Regulation Innovation Lab, a pioneering initiative by FinTech Scotland, in partnership with the University of Strathclyde and the University of Glasgow, aims to drive forward innovation in financial regulation in financial services.

For this innovation call, FinTech Scotland will be encouraging collaboration between fintech innovators and established financial institutions as well as leveraging research from universities to enhance the integration of ESG principles into financial practices, ensuring that the industry not only meets regulatory requirements but also contributes positively to society and the environment.

The call specifically targeted solutions that can help financial firms better manage their ESG responsibilities. The Lab”™s focus areas include ESG reporting, risk management, data transparency, and sustainable investment strategies.

Meet the participants

24 companies have been selected to be taken to the next stage of this initiative:

  • ESG Disclose
  • RegArt
  • Snugg
  • Data Catalyst
  • ESG Stream
  • Pulse Market
  • Trade in Space
  • Siccar
  • Ciendos
  • Exponential Climate
  • Cogo
  • Frontierra
  • GoCodeGreen
  • Gaialens
  • MnAI
  • Verifoxx
  • Scott Logic
  • Portf.io
  • Agentic Workflow
  • Texpert
  • ESG360
  • Propeco
  • Zumo
  • Two Hands

 

A Three-Month Escalation Process

These innovative companies will now participate in a three-month escalation process. This phase is designed to help them refine their pitches and deepen their understanding of the ESG challenges experienced by the financial sector. The process will involve intensive mentorship, targeted workshops, and engagement with industry experts from EY, Morgan Stanley, Lloyds Banking Group, HSBC, Barclays, Phoenix Group, Sopra Steria, Equifax, Virgin Money and abrdn.

 

Demo Day in September 2024

The program will culminate in a demo day scheduled for September 2024. During this event, the participating companies will present their refined propositions to a panel of judges and industry leaders. A select subset of these companies will be chosen to further develop their solutions in collaboration with established financial firms. This collaboration aims to bring cutting-edge ESG solutions to market, driving sustainability and innovation in financial services.

The Importance of ESG Innovation

ESG considerations are increasingly becoming a critical aspect of the financial services industry. The innovative solutions developed by the participants are looking to enhance transparency, accountability, and sustainability within the sector. By addressing key ESG challenges, these companies are helping to build a more responsible and future-proof financial ecosystem.

As noted by FinTech Scotland, the integration of ESG principles is crucial for ensuring that financial practices not only comply with regulatory standards but also positively impact society and the environment.