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Innovation relief is at hand for UK Fintechs

As Coronavirus dominates the agenda, with the Chancellor announcing £330 billion in relief measures to deal with its impact, it’s positive to see the UK Government also focusing on the longer term economy by helping develop the nation’s burgeoning Fintech sector.

In his first Budget earlier this month, Rishi Sunak focused a great deal of time and money on innovation-related measures. His plans to significantly increase public R&D investment to £22 billion per year by 2024-25 are a welcome development that should have a significant and positive impact on Fintech companies.

While it’s impossible to ignore the current implications of the global Covid-19 pandemic, it is encouraging to see the UK Government recognising a sector that will be one of the leading lights in driving economic growth in the longer term.

Across the UK, more than £7.6bn was raised by UK-based Fintechs between 2014 and 2018. Investment within the UK sector more than trebled from £685.3m in 2014 to almost £2.4bn in 2018. Meanwhile, as reported earlier this year by FinTech Scotland, the number of fintech SMEs based in Scotland has grown by more than 60 per cent, from 72 to 119 over the past year.

The additional investment set out in last week’s Budget adds to the package of innovation incentives and other forms of financial support available to aspirational Fintech businesses. The UK Government’s R&D (research and development) tax relief scheme offers innovative companies ”“ and there are many within the Fintech sector – up to 33p for every pound spent on qualifying R&D (dependant on the company status and its financial position). In a drive to maintain the country’s position as a global leader in science and technology, the scheme offers those investing in product or process improvements significant tax breaks provided they meet the required criteria.

Not all innovation-related projects carried out by Fintechs will, however, qualify for R&D tax relief. Companies must invest in clever and innovative projects designed to build and perfect their product if they wish to secure this relief. These can include projects focused on improving underlying software technology that supports innovative financial services operations including payments and transactions, mobile banking, peer-to-peer lending and crowdfunding, and retail banking. Developments in big data and projects seeking to make advances in text analytics and language processing, aimed at finding better means of using technology to read documents, are also likely to secure a rebate.

Making a claim for those areas of Fintech innovation can deliver significant financial rewards, which can be especially critical for businesses in their early development stages. It’s therefore important to gain an understanding of the scheme and ensure accuracy in the application process.

In addition to tax incentives which can benefit Fintechs, there are also other means of financial support available including targeted loans packages. Lombard’s Software Asset Funding product provides 3 – 5 year loans which can support companies which have invested in developing their own software for either internal operational use or for sale to third parties. This asset is then valued and used as collateral but it remains the property of the borrower over the period of the loan. There are also no restrictions on how companies use the loan. While Lombard is the only bank currently offering such a facility, it’s anticipated others will develop similar products as the number of companies that actually have fixed assets they can secure borrowing against continues to decline.

Fintech is currently well-serviced in terms of private and equity investment. But while there are currently no sector-specific grants available, companies may be eligible for Innovate UK Smart grants which are open to any technology business. These are available game-changing and disruptive’ innovations where an applicant can provide evidence of it creating an economic impact and leading to a considerable increase in market share.

As the UK Scotland’s Fintech sector continues to develop during this time of international crisis, Government incentives along with other forms of financial support will be increasingly essential in fuelling further investment and growth. The Chancellor’s latest pledge to provide more Government support in this area is therefore hugely welcome. Going forward, Fintech companies require a strong understanding of how to successfully secure these Government incentives and get access to other finance-raising opportunities if they are to reach their full potential.

Paul Barton is an innovation funding consultant at ABGI UK

4 Ways Content Marketing Benefits FinTechs

Did you know that 91% of B2B brands use content marketing to reach their customers?

With over 4 billion people using the Internet daily, it’s not surprising that so many brands are turning to content marketing.

Content marketing helps all companies boost brand awareness, connect with new customers and retain existing ones. 

Fintechs, especially those in early growth stages, can leverage content marketing to stand out from the crowd. Content marketing plays a unique role in helping FinTech brands overcome many of the challenges associated with emerging into a new market and launching the brand from the startup stage.

Keep reading to discover the top four ways Fintechs can benefit from building an online presence and creating quality content.

1) Communicating Complex Tech in Simple Language

Most Fintech solutions are based on complicated technology, like Blockchain. But despite complex underlying technology, most Fintechs target customers with little or no understanding of the tech. 

For example, Fintech Blockchain adoption rates are expected to grow by 75.2% by 2023. Yet, customers’ understanding largely hasn’t kept up ”” an HSBC survey shows that 59% of customers don’t understand Blockchain.

Without this fundamental understanding, Fintech solutions can seem risky or scary, which can prevent brands from reaching mainstream adoption. Yet, overcoming this information gap and helping customers understand the tech can significantly change the game. 

Good content marketing helps you achieve this aim by ditching the jargon, breaking down complex topics and explaining sophisticated technology in a way the average consumer can understand.

2) Brand Equity: Starting From the Ground Up

Creating brand awareness is crucial for building trust, reaching new customers and driving sales. So much so, that 77% of B2B marketing managers say branding is vital for growth.

Traditional financial providers can fall back on their brand name. After all, they’re a household name.

But, Fintechs face an entirely different situation as most startup brand names aren’t known. Successfully attracting customers and establishing yourself on the market requires you to quickly build brand equity and awareness.

“A brand does not exist within a company or organisation. A brand exists in the minds of your customers. A brand is the sum total of impressions a customer has, based on every interaction they have had with you, your company, and your products.” 

Content marketing incorporates many aspects of your online presence to create one, unified brand. So your customer has a consistent and reliable interaction with your company whether they’re engaging with you via social media, emails or on your website.

3) Communicating Founders’ Mission & Values

Most Fintech founders are driven by impressive and admirable visions of how they can improve business owners or customers’ lives and relationships with finances.

Whether it’s creating fairer lending or helping people make smarter budgets, Fintech companies are founded for a reason. 

But, this mission and value need to be communicated and shared with the world to attract customers and build brand loyalty.

Accenture calls purpose-led branding the movement from me to we’. Their research shows that customers increasingly choose to work with brands with a strong purpose or mission. So much so that 52% of customers would rather use the services or products of a brand that serves for something bigger and aligns with their clear personal value.

Content marketing can help you bring your visions and missions to light. Think founder interviews, a kickass about page on your website or even social media videos explaining your fundamental values. Sharing this type of content with prospective and current customers boosts brand loyalty and drives growth. 

4) Employer Branding

As a Fintech company, you need to find employees with the right skills and mindset. Developers, data scientists and other tech professionals are often in short supply. As technology continues to evolve, this skills gap will only worsen.

FinTechs also have to overcome the additional challenge of attracting developers and data scientists to a new company. Prospective employees could worry about the insecurity of joining a startup or entering a relatively new market. 

Employer branding can play an essential part in helping you attract the industry’s best and brightest. Capturing your values and unique selling point on your website and through thought-leadership articles improves your credibility and shows your company as an exciting place to work.  


Note: Kathryn is the CEO at Copy House, they specialise in helping Fintechs bring their brand to life and create a strong online presence with SEO optimised websites, thought-leadership content and social media. Find out more about Copy House by scheduling a call or visiting their website.

The challenges of scaling up and winning bigger business ”“ and how Proactis can help

Winning new business is difficult.  Often it’s most difficult for new and emerging companies to challenge the established order, especially if they’re doing things in a different way.  As businesses expand and develop, they begin to examine different avenues, moving away from ad-hoc smaller pieces of work to looking at more formal access routes to substantial contracts.  

Here we arrive at the wonderful world of bidding, proposals and tendering (you’ll see these terms being used interchangeably, but don’t worry they all mean the same).  As potential contract sizes get larger, the demands placed on prospective bidders become ever more arduous and detailed, formal submissions are required for public and private sector buyers alike.  

As you might expect, larger companies have more resources to dedicate to business development and specifically to bidding for work.   A recent survey of bid professionals showed just 20% worked in organisations of less than 100 employees and only 12% were the sole responsible resource in the organisation*.  

Unfortunately for smaller organisations, research has repeatedly shown a direct correlation between the level of resource employed in preparing proposals and success rates.  The good news for developing organisations is that there are some relatively easy steps to take to improve proposals.  A recent industry study shows that nearly half of all procurement professionals believe suppliers are letting themselves down with their proposals and that they are of poor quality.  With the general standard being low, smart thinking and some effort can make a big difference.

If you are at the stage where you are or soon will be submitting proposals as part of your business development strategy then we would like to support you.  As a commitment to helping exciting fellow Scottish businesses within the Fintech community, we are offering a day of expert bid support to a limited number of organisations completely free of charge.

This support could be analysis of current bid strategy, support with a live bid or a review of a past proposal.

To discuss your free expert support, contact Andrew Watson, Bid Consultancy and Training Manager at Proactis Tenders Limited – Andrew.Watson@proactis.com.

Proactis Tenders Limited is one of the UK’s leading procurement companies. Its team of specialists has extensive knowledge and considerable experience in providing a range of eProcurement systems and services to buyers in the public sector. It also offers a range of services to private companies from all sectors throughout Europe who are seeking new business opportunities. 

*APMP UK Compensation Report 2019

Innovative fintechs awarded place on acclaimed growth programme

Nine innovative fintech businesses have been selected to take part in Addleshaw Goddard’s prestigious growth programme, AG Elevate.

Senior fintech lawyers at the leading international law firm will provide mentoring and legal guidance to the nine high-growth businesses and start-ups, worth a total of £500,000.

Fintech firms Amiqus, ARQ, Autopaid, Finance Unlocked and Finvisage are among those to be awarded a place on this year’s AG Elevate after submitting successful applications earlier this year.

They will be joined by OBR-Open Banking Reporting, Pionr, Trace and Tumelo on the prestigious growth programme.

Fiona Gosh, a partner and head of fintech at Addleshaw Goddard, said: “The AG Elevate programme was founded in 2017 to support ambitious fintech start-ups across the globe and help them overcome the complex regulatory and legal challenges businesses can encounter as they scale up.

“Fintech firms are some of the most disruptive and innovative businesses we see in the market. Helping the very brightest achieve their full potential is something we’re tremendously passionate about, and that’s why the AG Elevate programme exists today.

Dave Anderson, a partner at Addleshaw Goddard who specialises in working with technology companies, said: “This year we’ll be working with a fantastic array of earlier stage fintechs, all of which are bringing interesting innovations to the financial services industry that will shake up business practices and offer greater quality and choice in the market. Addleshaw Goddard enjoys a reputation for excellence in technology and financial services, and the industry-leading advice we provide will help ensure our chosen fintech companies can overcome the regulatory hurdles they will encounter on their path to growth.”

The chosen businesses will be allocated assigned mentors to provide the equivalent of 25 hours’ free legal advice covering funding, payments, financial regulation and technology.

Members will also receive access to Addleshaw Goddard’s legal seminars, legal updates, networking events and TORCHLIGHT online tool, which helps users track future regulatory developments in the financial services sector.

Addleshaw Goddard has a dedicated Fintech and Payments team with more than 30 senior lawyers and recently exhibited at the Money 2020 Fintech conference in Amsterdam. The firm was recognised as one of the top tenMost Innovative Law Firms’ in Europe at the 2018 Financial Times Most Innovative Lawyers Awards.

For details on how to apply for next year’s AG Elevate programme visit: https://www.addleshawgoddard.com/en/ag-elevate/programmes/apply/

Event – Creating World Class Fintech Innovations

On 11 June, EIT Digital and Fintech Scotland invite interested parties to a networking event, titled Creating World Class Fintech Innovations’. The University of Edinburgh’s Business School is the venue for this half-day event focussed on the future of fintech in Scotland, and the opportunities for universities, corporates and start-ups within this thriving ecosystem.

EIT Digital is the leading European digital innovation and entrepreneurial education organisation driving Europe’s digital transformation. It recently opened its Scottish Satellite in Edinburgh to deepen connections with the Scottish innovation ecosystem and to intensify its relationship with the Scottish Private and Public Sectors.

The Edinburgh Satellite intends to host a new Doctoral Training Centre, with a focus on fintech, and Cyber Security via a new program supported by the Scottish Government’s Cyber Resilience Unit and ScotlandIS, plus other areas of national strategic importance. Its students will be supported by universities across Scotland with the first students expected to start later in 2019.

EIT Digital is one of eight Innovation Communities of the European Institute of Innovation and Technology. It has 10 Co-Location Centres across Europe, including one in London, and the Scottish satellite was the first one to be opened in the UK.

To register for this event click here

Wayra AI & Blockchain Accelerator – New Applications now open!

The call for the next AI & Blockchain Programme is now open and start-ups can apply using this link. (Closing date 29th May 2019)

The Accelerator is run in partnership with The University of Edinburgh and Wayra, combining the technical & research expertise of UoE and Wayra’s commercial connectedness to London’s entrepreneurial ecosystem.

This Programme provides coaching, mentors, access to investment and industry networks. It is supported by Scottish Enterprise, offering Scotland wide businesses support, and sponsored by CISCO

The Programme runs for 6 months, meets three days a week and is based in the Bayes Centre, Edinburgh . A founder of each company is required to attend each week and will be provided with desk space for 7 days per week. The Programme has national reach but an Edinburgh focus and includes a £7500 stipend to cover travel costs.

Call for innovative fintechs as NewDay releases public APIs

Photo by Two Paddles Axe and Leatherwork on Unsplash

Open Banking APIs

NewDay has developed a dedicated interface to Open Banking’s API standards and has launched its test facility for AISP, PISP (which will allow TPPs to initiate Balance and Money Transfers) and CBPII APIs. NewDay is interested in engaging with TPPs who want to test their applications against its APIs.

NewDay intends to launch its Production instance of the APIs from 1st June 2019.

 

NewDay Overview

NewDay’s aim is to provide credit card products that work for its 5 million customers. NewDay has four own brand products: aqua; marbles; opus; and fluid.  Aqua is NewDay’s main brand for customers who are new to credit, offering 4 different credit card products and also personal loans to existing customers. NewDay also provides credit card products in partnership with a number of well-established UK retailers including: Amazon; TUI; Debenhams; House of Fraser; Laura Ashley; and the Arcadia Group (which includes brands such as Topshop and Miss Selfridge). Over four million customers in the UK use one of NewDay’s co-brand credit cards as a valued part of their shopping experience.

 

How to get involved

For more information on how to engage with NewDay’s APIs please go to our Developer Portal, https://developer.newdaycards.com, or send a query to openbankingsupport@newday.co.uk

 

Holt Accelerator Welcomes Scottish Fintechs to apply for their World-Class Fintech Accelerator Program

Written by Sarah Spagnuolo, Marketing Director at Holt Fintech Accelerator

Holt Fintech Accelerator in Montreal, Canada is a world-class fintech program that is currently accepting international applications until June 14th.

This is a fantastic opportunity for fintechs from Scotland to conquer Canada before scaling up to the US, because you get the opportunity to:

  1. Do product testing with access to senior Canadian potential partners
  2. Get assistance in fast-tracking your time to business (ie. From Visa to incorporation)

What we’re looking for

We’re looking for international, pre-Series A (i.e. bootstrapped, pre-seed, seed, bridge), FinTech startups who (or that)  are ready to take advantage of this high-impact program.

The program is being backed by the Holt family”“ one of Canada’s wealthiest families. The program is also supported by one of Canada’s largest AI firms and a long list of influencers within the FinTech community, offering invaluable insights into the North American market. Our website has all the info: https://www.holtaccelerator.ai/.

Here’s what we offer

The Capital (up to $125K cash + $50K value)

  • $25K CAD + $200K CAD in-kind on flexible terms,
  • Up to $100K CAD available if milestones are met,
  • Potential investments from Holt angels & institutions,
  • Potential for capital calls from Holt or Holdun.

The Ecosystem (Priceless)

  • Plug into Holt Financial’s digital bank and exchange for new revenue sources,
  • Raise financing more easily and strategically through the STO platform,
  • Potential to partner with our alumni and future cohort.

Potential Clients (+$100K CAD value)

  • Access to key people in financial institutions,
  • Obtain real feedback on product(s),
  • Potentially close deals with paying customers.

The Support ($100K CAD value)

  • Super Advisors provide one day a week over 12-weeks (See our growing list of Advisors here),
  • Access to world class PhDs to guide the teams weekly,
  • Coaching & workshops (pitching, lunch & learns, etc.),
  • Guidance from industry & tech experts,
  • Bonus: visibility, free office, service provider discounts.

 

Deadlines

Application deadline:June 14

Invitation for selection date: June 15

Selection dates:July 8-9 (MTL startup festival + meet and obtain feedback from over 100 Advisors)

Program starts:August 19

Program ends: November 8

 

Here’s what the Holt 2018 cohort had to say about the Program

“Once I read about the Holt Fintech Accelerator’s mission and understood the background of the family, as well as the array of businesses and the structure of the program, I knew it’d be a great fit. Holt can connect us to client and investor opportunities, and accelerate the growth of our clients.”

Thomas Schickler, CEO The Liquidity Marketplace

“It’s an exciting time to be in Fintech.  We’ve seen waves of disruption in the space, and then banks absorb some of that change.  We’re helping banks compete with stand-alone fintech apps by bringing personalized financial wellness tools into their offering and winning the customer back. We’re excited to be part of the Holt Accelerator and appreciate the support they’re giving us to let more people know about our product. The rest of the cohort is also highly talented, and we may have an opportunity to partner with other startups that complement our offering.”

Sajil Koroth, CEO, KapitalWise

 

“We had several discussions with Brendan and Jan before applying and realized that they are great people, with great connections into financial institutions in Canada ”” our current customer base.  We’ve also learned since starting the program how hands on these guys are. The program is extremely well organized and the Holt management team has been very helpful. This journey is incredibly exciting!”

Sean Merat, CEO, Owl

Got a Bold Business Idea? Converge 2019 is Now Open for Applications!

The quest to find the next generation of entrepreneurs from Scotland’s thriving academic entrepreneur community is fully underway. Converge, the pioneering entrepreneurship programme for staff, students and recent graduates from across Scotland’s universities and research institutes has just launched its 2019 programme, challenging every Scottish university to uncover the next big idea.

Now in its 9thyear, Converge now has the financial backing of all 18 Scottish universities ”“ up 11 from last year. They join the Scottish Funding Council which has earmarked over £1m funding to cover the next three years, and Creative Scotland.

This year’s total prize fund is the biggest yet at £230,000 and is shared across the four main platforms ”“ Converge, Impact, KickStart and, new for 2019, the Creative Challenge. Successful applicants also benefit from in-depth business training, pitch coaching, support and access to an extensive network of business and investor contacts.

Open to spin-outs and start-ups from any industry sector, Converge alumni are represented across a wide range of sectors including the life sciences, technology, engineering, renewables, the creative industries and medtech.  Some of their ground-breaking innovations include next generation ultrasound sensors, educational robots, wearable medical devices, trailblazing cancer treatments and robotic probes.

Applicants now have until Thursday 25 April to submit their proposals.  Full details including how to apply are available on the Converge website.  Additionally, the Converge Outreach Team is currently travelling the length and breadth of Scotland to offer help and advice to students and staff thinking of applying to this year’s Programme.  Events are scheduled throughout April with new sessions added daily, so please take a look at our schedule for more details.

Do you have what it takes? Celebrating entrepreneurial success in the UK

Article written by Calum Brewster, Managing Director, Head of UK Regional Offices at Julius Baer

Spectator Economic Disruptor of the Year Awards

The winner of the Spectator Economic Disruptor of the Year Awards 2018 is on a mission to bring financial services to the unbanked’. Pockit – a low cost, easy-access banking app ”“ was the overall winner, establishing itself as a true disruptor in the banking sector.

The judges commented that its clear social purpose ”“ which tackles a very serious problem ”“ is what stood out. Pockit has 500,000 customers so far and that number is growing by 20,000 each month. It’s targets are very ambitious but it’s attracted significant investment from a number of high-profile venture capital investors to achieve these goals.

Fintech has long been celebrated as a truly disruptive sector and a large number of successful companies are making huge strides in rapidly changing the status quo ”“ many of which are based in Scotland. This does not go unnoticed at Julius Baer. While they don’t expect robots to replace humans in the hugely important job of client interaction, they do keep a very focused eye on technology that can help them to better service their clients’ very complex needs.

Partnering with the Spectator to create these awards helps Julius Baer to stay at the forefront of technology enhancements ”“ giving us the opportunity to speak with the companies and individuals who are changing the world of financial services.

Founded in Zurich in 1890, and now a fast expanding player in the UK wealth management scene, Julius Baer has an instinctive sympathy with business-builders that bring new thinking and positive change to established markets.

 

So, who are the companies that are rewriting the rules in 2019?

Entrants for these awards will be innovators with real passion for their products and customers and the potential to scale up from local to national and international arenas, underpinned by strong financial plans. There will be five regional winners (one from Scotland), chosen from a high-profile judge in each region. The national winner will be named at a gala dinner in central London and will be invited to join The Spectator’s elite private dining club of business leaders as well as benefiting from the extensive media coverage that these awards generate.

 

Do you have what it takes?

As true disruptors in this sector we are encouraging founder members of Fintech Scotland to enter the prestigious Spectator Economic Disruptor of the Year Awards 2019. Details can be found at www.spectator/co.uk/disruptor