Funding Boost for Smart Data Foundry
Edinburgh-based Smart Data Foundry (SDF) secures £3 million in funding to launch a new Financial Data Service. This initiative, funded by Smart Data Research UK, part of UK Research and Innovation (UKRI), will provide researchers with unparalleled access to secure, de-identified financial data, helping to paint a clearer picture of the UK’s economic resilience and household financial health.
This new service will form part of a national network of six data services aimed at positioning the UK at the forefront of smart data research. By enabling access to financial behaviour data from households and businesses, SDF will empower researchers to tackle pressing societal challenges, such as the cost-of-living crisis, financial inclusion, and regional productivity disparities.
Transforming Research with Secure Financial Data
Dougie Robb, Interim CEO of SDF said:
“This initiative fosters data-sharing partnerships that unite academia, public institutions, and private enterprises to deliver outcomes that improve lives across the UK.”
SDF has already gained national recognition for its innovative use of anonymised financial data for public good, including partnerships with NatWest Group to analyse financial behaviours during the COVID-19 pandemic and collaborations with Sage and CEBR on SME economic tracking.
A Network Driving National Innovation
The Financial Data Service is one of two newly funded services, alongside the Smart Energy Data Service, joining four existing services dedicated to imagery, geographic data, sustainable places, and data donations. Together, this network will accelerate the UK’s position as a leader in data-driven solutions, guided by the Economic and Social Research Council (ESRC).
Stian Westlake, Executive Chair of the ESRC, emphasises the importance of this investment:
“Data infrastructure is as critical to our shared prosperity as transport or power networks. With this investment, we are paving the way for economic growth, improved public services, and a sustainable future.”
From Insights to Actionable Impact
The Financial Data Service will bridge the gap between financial institutions, researchers, and policymakers to tackle real-world challenges. Its findings will inform targeted policy responses to economic shocks, support innovation in financial inclusion, and enhance understanding of how communities experience financial change.
Magdalena Getler, Head of Academic Engagement at SDF, remarks,
“With the anticipated Data (Use and Access) Bill, we are entering a new age of empowered, secure data use. This legislation will enable transformative research that tackles societal challenges, from poverty to economic inactivity.”
Fintech Innovation in Scotland delivers growth with 8% Increase in employment
The FinTech Scotland Cluster recorded an 8% year-on-year employment growth in 2024 bringing the total number of people working in fintech to over 11,300.
The continued economic contribution by the cluster comes as Fintech Scotland reaches its seventh anniversary since formation.
This growth underlines the significant contribution fintech will make in delivering the UK Government Modern Industrial Strategy and the importance of clusters to “unleash the full potential of our cities and regions”.
The fintech cluster growth has been underpinned by increasing technology adoption and fintech partnerships with established financial firms, highlighted by the tenfold increase in the number of fintech SMEs since 2018 in Scotland.
A significant cluster development in 2024 has been Fintech Scotland’s successful implementation of the Financial Regulation Innovation Lab (FRIL) which has delivered new jobs and investment to the local economy, achieving £18m investment for the region in its first year.
This has been achieved by bringing together twenty-five financial and technology institutions from across the UK to address over twenty industry challenges, attracting local and global fintech SMEs to create new products.
Nicola Anderson, CEO at FinTech Scotland said:
“Our cluster initiatives are delivering a positive economic outcome through more jobs, investment and innovative SME businesses. The Financial Regulation Innovation Lab highlights our leadership in using collaboration and technology adoption to deliver this growth and shape the future of financial services.”
Catherine Martin, Vice-Principal Corporate Services at the University of Edinburgh:
“As a founding partner of Fintech Scotland, we are proud to be an active participant in the cluster and to support its impact by leveraging our world-renowned expertise in data-driven innovation, and interdisciplinary research to address real-world challenges in finance.”
Jane Martin, Managing Director, Scottish Enterprise:
“The remarkable growth of Scotland’s fintech sector reflects the strategic efforts by the whole cluster to develop a thriving innovative environment. Scottish Enterprise has been supporting this journey by providing early-stage investment and facilitating international market access”.
Jackie Leiper, Chief Customer Officer, Lloyds Banking Group:
“There’s a real buzz around the fintech sector in Scotland and Lloyds Banking Group is thrilled to be a part of that. We’re working hard to drive more digital investment here which will help us to build new skills and capabilities and make the country a global destination for financial services tech talent.”
Fintech Innovation in Scotland delivers growth with 8% Increase in employment
The FinTech Scotland Cluster recorded an 8% year-on-year employment growth in 2024 bringing the total number of people working in fintech to over 11,300.
The continued economic contribution by the cluster comes as Fintech Scotland reaches its seventh anniversary since formation.
This growth underlines the significant contribution fintech will make in delivering the UK Government Modern Industrial Strategy and the importance of clusters to “unleash the full potential of our cities and regions”.
The fintech cluster growth has been underpinned by increasing technology adoption and fintech partnerships with established financial firms, highlighted by the tenfold increase in the number of fintech SMEs since 2018 in Scotland.
A significant cluster development in 2024 has been Fintech Scotland’s successful implementation of the Financial Regulation Innovation Lab (FRIL) which has delivered new jobs and investment to the local economy, achieving £18m investment for the region in its first year.
This has been achieved by bringing together twenty-five financial and technology institutions from across the UK to address over twenty industry challenges, attracting local and global fintech SMEs to create new products.
Nicola Anderson, CEO at FinTech Scotland said:
“Our cluster initiatives are delivering a positive economic outcome through more jobs, investment and innovative SME businesses. The Financial Regulation Innovation Lab highlights our leadership in using collaboration and technology adoption to deliver this growth and shape the future of financial services.”
Catherine Martin, Vice-Principal Corporate Services at the University of Edinburgh:
“As a founding partner of Fintech Scotland, we are proud to be an active participant in the cluster and to support its impact by leveraging our world-renowned expertise in data-driven innovation, and interdisciplinary research to address real-world challenges in finance.”
Jane Martin, Managing Director, Scottish Enterprise:
“The remarkable growth of Scotland’s fintech sector reflects the strategic efforts by the whole cluster to develop a thriving innovative environment. Scottish Enterprise has been supporting this journey by providing early-stage investment and facilitating international market access”.
Jackie Leiper, Chief Customer Officer, Lloyds Banking Group:
“There’s a real buzz around the fintech sector in Scotland and Lloyds Banking Group is thrilled to be a part of that. We’re working hard to drive more digital investment here which will help us to build new skills and capabilities and make the country a global destination for financial services tech talent.”
KPMG UK joins FinTech Scotland further boosting fintech innovation in Scotland
KPMG UK has joined FinTech Scotland, the cluster management organisation for fintech in Scotland. The two organisations will work closely together to help foster innovation, accelerate growth and drive technology adoption within the Scottish financial technology sector.
KPMG UK’s commitment adds additional expertise to Fintech Scotland’s cluster continuing to develop Scotland’s leadership as a fintech cluster as well as supporting the firm’s plans for further growth in Scotland.
As a global professional services network, KPMG UK will bring some of the latest thinking in financial services innovation to a sector that is being disrupted like never before by new technologies such as AI, Distributed Ledger Technologies or Open Finance to name a few.
KPMG UK’s leadership will also play a crucial role in ensuring that Scotland’s fintech cluster continues to lead by example through purposeful innovation driven by collaboration to foster financial inclusion.
Fintech Scotland’s cluster includes over 250 fintech SMEs, 35 established financial and professional services institutions, global technology enterprises, world-class universities, regulators and a supportive public sector.
Ann Devine, Partner at KPMG UK, said:
“We’re excited to be working with Fintech Scotland and deepen our relationships with firms in this growing sector. Scotland is one of the key clusters for UK fintech activity and this collaboration demonstrates our ongoing commitment to local fintech businesses in the region.”
Nicola Anderson, CEO of FinTech Scotland, said:
“This partnership with KPMG UK strengthens our shared commitment to fostering innovation, collaboration, and growth in Scotland’s fintech cluster. Thanks to KPMG’s global expertise and the thriving Scottish fintech community, I’m confident we can accelerate innovation and support the scaling of innovative businesses that contribute to Scotland’s economic and societal progress.”
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.
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.”
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
Phoenix Group Announces Winner of Women’s Innovation Forum: Hazel Platform
FinTech Scotland’s Strategic Partner, Phoenix Group, the UK’s largest long-term savings and retirement business, just announced the winner of its Women’s Innovation Forum: the innovative platform Hazel. This announcement follows a comprehensive challenge launched in August 2023, in collaboration with FinTech Scotland, inviting organisations to pitch transformational solutions aimed at engaging women in their financial futures and helping them make more informed decisions.
Addressing the Gender Pension Gap
Phoenix Insights, the think tank of Phoenix Group, has highlighted a concerning trend: women are significantly lagging behind in their pension savings due to various life events such as caring responsibilities and divorce. By their 40s, women typically save 34% less for retirement than men, and this gap widens to 51% by their 50s, despite women generally living longer. The research highlights an urgent need for innovative solutions to bridge this gap and ensure women have sufficient income for a comfortable retirement.
The Winning Solution: Hazel
The Hazel platform, an innovative tool providing guidance and support on using housing wealth to enhance retirement income, has emerged as the winning solution. Hazel helps individuals, particularly women, understand how to utilise the equity in their property as part of a holistic retirement financial planning process. This approach can free up significant capital in retirement, contributing to a more secure and comfortable future.
How Hazel Works
Hazel’s platform offers balanced and personalised guidance to adults over 50, including retirees, on leveraging property assets. Users are guided through considerations related to downsizing, relocating to a more affordable area, or releasing equity through later life lending products such as lifetime mortgages. The platform provides a holistic personal assessment, considering lifestyle and property choices, and offers insights on finding and funding appropriate housing options and financial solutions.
Women, who are more likely to own their homes in retirement and live longer with lower pension wealth, stand to benefit significantly from Hazel’s guidance. By helping women make informed decisions about their housing wealth, Hazel aims to improve financial confidence, close the income gap, and enhance quality of life in retirement.
Moving Forward with Hazel
Phoenix Group and Hazel will now explore integrating a pilot of the platform into Phoenix’s existing services. Claire Hawkins, Executive Sponsor of the Women’s Innovation Forum and Phoenix Group’s Director of Corporate Affairs and Investor Relations, expressed her enthusiasm for the initiative:
“Hazel’s solution will help more women understand how they can use their property assets to top up their pensions and close the income gap in retirement. This practical and scalable solution offers all homeowners greater choice and control over funding their retirement. We see tremendous potential in this project to engage women in their financial futures and help them make better, more informed decisions.”
A Commitment to Empowering Women
The collaboration with Hazel is part of Phoenix Group’s broader commitment to addressing the gender pension gap and supporting women’s financial empowerment. By providing innovative, research-based solutions like Hazel, Phoenix aims to ensure that women are better prepared for retirement and can enjoy a higher quality of life.
Mark Whitcroft, Co-Founder of Hazel, highlighted the importance of this partnership:
“Grounded in extensive research with the UK’s National Innovation Centre for Ageing (NICA), Hazel was developed to address the significant challenges older adults face in making crucial life and housing decisions. Our collaboration with Phoenix Group broadens the spectrum of guidance available to their clients, empowering individuals to make confident and informed choices about their later years.”
TSB and FinTech Scotland open applications for new Innovation Labs programme
From today, TSB is taking applications for fintechs to participate in its fourth TSB Innovation Labs programme as the bank and Fintech Scotland encourage a new round of fintech collaboration.
In this year’s programme TSB is looking to work with fintechs that have open banking propositions to help the bank develop technology that will offer customers a more personalised experience and help them access a wider of financial products such as savings, insurance, investments and pensions.
The scheme will help grow Scotland’s fintech sector ”“by giving successful applicants the opportunity to develop their proposition under the guidance of TSB leaders across its business in its Edinburgh headquarters, Henry Duncan House.
TSB has also announced it will be partnering with Doshi for the next 12 months following last year’s Innovation Labs Programme. Doshi will be working with TSB to provide gamification functionality to support TSB’s Money Confident Communities financial education programme. The initiative has been in place for three years and involves TSB colleagues volunteers visiting local schools to help young people as they take their first steps toward financial independence.
Aruna Bhalla, Head of Partnerships & Open Banking, TSB said:
“Scotland is home to more than 200 fintechs and we’ve seen for ourselves the innovation they can bring in helping us deliver money confidence to our customers. We’re really excited to be partnering with Doshi following last year’s programme and want to work with fintechs this year that can help us shape the future of our Open Banking strategy.
Nicola Anderson, Chief Executive, Fintech Scotland said:
“We’re delighted to work with TSB and continue to be inspired by TSB’s approach to supporting fintech development, working in true partnership on solutions and propositions for customers. This year’s programme, focused on Open Banking is a sign of the continued value Open Banking innovation presents for the future of the banking sector. It’s an exciting opportunity and I’m looking forward to seeing the results and partnerships develop”