Financial Regulation Innovation Lab (FRIL) Responsible Innovation Case Study: Encompass
FRIL: Accelerating the Fight Against Financial Crime
Financial crime might sound distant, something that happens behind the scenes in big institutions, but its impact is personal. It can touch anyone. From identity theft to money laundering, these crimes erode trust and cost billions every year.
That’s why FRIL launched its Financial Crime Innovation Call: a challenge designed to find, fund, and fast-track groundbreaking technology that helps financial institutions stay ahead of criminals.
For Encompass, an international company with roots in Glasgow, this was more than just a competition. It was an opportunity to showcase their expertise, build new partnerships, and accelerate innovation.
By taking part, Encompass gained direct access to global tier-one banks, opened up new commercial opportunities, and fast-tracked the development of new product capabilities. For a company already at the forefront of financial crime prevention, FRIL’s challenge acted as a powerful accelerator, connecting ambition with action.
The Challenge: Fighting Financial Crime Head-On
Fraud and financial crime affect everyone: individuals, businesses, and entire economies. Criminals find new ways to exploit the system every day, while financial institutions face the ongoing challenge of keeping up. The stakes are high: in 2023 alone, global banks were fined billions for failing to prevent fraudulent activity.
Complying with regulations is essential, but it comes at a cost: around £38 billion in the UK that same year. And as technology evolves, so do the tools of both criminals and those working to stop them.
One of the biggest hurdles? Disconnected data.
When information is trapped in separate systems (within or between organisations), it becomes harder to spot suspicious behaviour and act quickly.
Why tackling this challenge matters:
| For Industry | For Consumers |
| Preventing financial crime isn’t just about avoiding fines – it’s about protecting customers, building trust, and reducing operational and regulatory risks. | Strong financial crime prevention means safer transactions, fewer victims, and the confidence that their personal data and money are secure. |
When the system works better, everyone benefits.
FRIL’s Approach: Innovation in Action
To tackle this complex problem, FRIL’s Financial Crime Innovation Call set out five specific challenges. Each focused on a critical question:
- How can technology and data help us understand and detect financial crime faster?
- How can we make identity verification more secure and efficient?
- Could smarter data sharing between institutions improve outcomes?
- How can we enhance fraud response systems in real time?
- And what can we do to future-proof these systems against new risks?
Rather than solving these questions in isolation, FRIL brought together innovators, major financial institutions, regulators, and data experts to collaborate directly.
This unique setup, combining early-stage funding with direct access to decision-makers, gave companies like Encompass the chance to test, refine, and rapidly advance their solutions in a real-world environment.
The Case Study – Encompass
Encompass, a global company headquartered in Glasgow is celebrating ten years in the city. The corporate digital identity firm continues to expand in Glasgow, and has recently signed a ten-year lease on a new premises. Encompass joined FRIL’s Innovation Call on Financial Crime in January 2025. This is their story of their experience with FRIL.
“What we’ve ended up with in three months, is three real commercial opportunities that would have easily taken us twice or three times that long if we had not had the backing of FRIL and that structure”.
— Howard Wimpory, Director of Transformation, Encompass.
“FRIL has been an exceptional support and catalyst in helping Encompass expand our network and presence in Glasgow. We have benefited from valuable insights and interactions from the market that will fuel our ongoing innovation”.
— Alex Ford, Chief Revenue Officer, Encompass.
About Encompass
Encompass has been fighting financial crime since 2011. Founded in response to a personal experience with fraud, Encompass helps the largest global financial institutions understand exactly who they’re doing business with by revealing the true owners and controllers behind corporate clients.
Watch the video to see how EC360, Encompass’s Corporate Digital Identity (CDI) platform, works in practice.
“The reason that we do this is to identify whether they’ve ever been sanctioned for crime, so that those bad actors are excluded from running companies and accessing the world’s commercial financial institutions”.
— explains Howard.
“Our solution creates a consistent and reliable outcome every time, and we do it in a faster way than any human can do. So for a human to do the job that our platform does could take three or four days – what we could do in ten minutes”.
— adds Howard about the Encompass solution.
Encompass stats
| Sector | Fintech |
| Employees | 130 (46 in Glasgow) |
| Turnover | UK, US, Netherlands |
| Location | Glasgow / London |
The Ambition – Growth and Vision
Encompass joined the Financial Crime Innovation Call because they wanted to explore how their existing corporate identity platform could develop to benefit financial institutions.
“Glasgow offers a collaborative ecosystem of fintechs, financial institutions and tech talent emerging from leading universities”.
— explains Alex.
There were two key specific areas the Innovation Call helped Encompass explore that were key to the company’s growth and vision:
| To work directly with industry to hone products and services | To build relationships with clients, and others in the financial ecosystem |
| In this case, Encompass were interested in developing their future ambitions around ‘Know Your Customer’ processes, which are mandatory processes to verify the identity of clients to prevent financial crime and comply with regulations. | The collaboration brought Encompass closer to potential new clients while also offering an opportunity to build confidence within industry in the value of buying from trusted FinTechs who offer tried and tested solutions. |
The Outcomes – Impact
For Encompass, FRIL’s challenge wasn’t just a networking exercise: it was a catalyst. The collaboration helped them build stronger industry connections, speed up product development, and unlock commercial opportunities with global banks.
For FRIL, it was proof that innovation and regulation can move faster together, creating real progress in the fight against financial crime. Because when data connects, people are protected. And when innovators are empowered, financial systems become safer for all.
“We’ve made direct new commercial relationships with at least two Scottish based financial services firms. And we’ve got involved with a parallel organisation based in the West Midlands focused on legal
firms. Through the backing of FRIL, we achieved in three months what would normally take 18 months”.
— explains Howard.
Impact summary
- New commercial relationships developed.
- Expanded network.
- Acceleration of average ‘contact to client’ development time reduced from average of 18 months to three.
- Relationships developed with other members, leading to events in New York and London, expanding connections and brand.
Next steps – Watch this space for:
- Emerging deals with interested clients.
- Accelerated product development to support financial institutions in tackling financial crime.
“We’re excited to continue our journey in Glasgow, and look forward to leveraging this well-connected community to fuel our growth globally”.
— concludes Alex.
About FRIL
FRIL is part of the larger Glasgow City Region Innovation Accelerator programme with Glasgow, one of three pilot regions’ – including West Midlands – sharing a £100m investment aimed at transforming R&D within the UK. Led by Innovate UK, this programme supports the UK Government’s levelling-up agenda by empowering local regions to drive economic growth through innovation. This approach not only supports regional development but also positions the UK as a leader in the global innovation landscape
Download the Encompass case study.
Financial Regulation Innovation Lab (FRIL) Innovation Case Study: Profylr
FRIL: The Lifeline We Didn’t Know We Needed
Sometimes innovation begins with a simple question: How can we do better for people? That’s exactly what happened when FRIL launched its Optimising Consumer Outcomes Call – an open invitation for fintech pioneers, financial institutions, regulators, and researchers to come together and tackle one big challenge: making finance fairer, clearer, and more accessible for everyone.
In Glasgow, one small but ambitious company, Profylr, saw its chance. The firm used FRIL’s challenge as a launchpad to fine-tune its data-driven compliance tool, a technology that helps financial institutions ensure they’re treating customers fairly.
The result? Two new local jobs, a fast-tracked proof of concept, and new commercial partnerships with major financial players. But beyond that, FRIL gave Profylr something even more valuable: momentum. It became the spark that accelerated growth, deepened industry connections, and helped put Glasgow more firmly on the map as a hub of financial innovation.
The Challenge: Turning Regulation Into Opportunity
The UK’s Financial Conduct Authority (FCA) recently introduced Consumer Duty, a regulation designed to protect customers in financial services. It’s all about fairness: setting higher standards for transparency, value, and support so that everyone, no matter their financial background, can make sense of their money.
Financial firms now have to prove they’re:
- acting in their customers’ best interests
- preventing foreseeable harm
- delivering fair value for money.
For consumers, that means clearer information, fairer products, and better support. For
companies, it means more trust and less risk.
But while the goals are simple, achieving them isn’t. Many institutions are weighed down by outdated systems and manual reporting, which make it hard to track and demonstrate compliance. The result? A slower response to customer needs and a barrier to consistent, fair outcomes.
Why addressing this challenge matters:
| For Industry | For consumers |
| Meeting Consumer Duty is essential, not just to stay compliant, but to prove they care about the people they serve. It’s about earning trust through fairness and transparency. | It means finance starts to feel more human. Products become easier to understand. Decisions become clearer. Confidence grows. |
FRIL’s Formula for Change
FRIL’s Optimising Consumer Outcomes Innovation Call posed seven tough questions about how technology and data could improve financial outcomes. Instead of just talking about innovation, FRIL made it happen by bringing together fintech startups, global banks, regulators, and academics in one collaborative space.
This wasn’t a typical funding programme. It was a co-creation lab, where ideas could be tested, challenged, and refined in real time. The winning innovators didn’t just get funding: they gained direct access to decision-makers inside major financial institutions.
For companies like Profylr, that combination of support, visibility, and collaboration was game-changing. It turned ambition into action, and ideas into real-world impact.
The Bigger Picture
FRIL’s approach shows what’s possible when innovation and regulation work hand in hand. It proves that technology can help financial services not only do better, but be better: fairer, smarter, and more inclusive. For Profylr, and for Glasgow’s growing fintech community, FRIL wasn’t just a project. It was the lifeline they didn’t know they needed, one that’s helping to shape the future of fair finance.
The Case Study – Profylr
Profylr, a Glasgow based Fintech, was a winner in the FRIL Consumer Duty Innovation Challenge in February 2025 for its Information Genetics® solution. The platform connects industry client data directly to regulatory requirements, generating intelligent reports that cut down manual intervention and accelerates compliance and decision-making.
“The FRIL challenge, and the team at FinTech Scotland have been a lifeline that we didn’t know we needed. We’ve been able to accelerate at a pace that we wouldn’t have been able to achieve before“.
— Caroline Steel, Chief Operating Officer, Profylr.
Profylr’s innovation enables financial firms to quickly see from their data whether they are delivering good customer outcomes such as supporting vulnerable customers, and highlights any issues that need resolved in a matter of minutes, rather than weeks.
“Our solution helps firms take away the manual burden that comes from regulatory reporting. It’s about achieving trust and confidence in data that’s used to make decisions that affect all our lives”.
— explains Caroline.
“The innovation acceleration in Glasgow has played a crucial role in enabling the FRIL partners to come together in support of innovation in industry and the city”.
— Nicola Anderson, CEO FinTech Scotland.
Profylr stats
| Sector | Fintech | |
| Employees | 7 – 10 | |
| Turnover | Pre-revenue, currently onboarding first client | |
| Location | Glasgow / London |
The Ambition – Growth and Vision
Profylr applied to FRIL, not just for funding, but for the opportunity to innovate and grow within a vibrant financial ecosystem in Glasgow City Region.
Through the programme, Profylr accessed direct engagement with industry, gaining granular insights into real-world challenges. This allowed them to refine their product and build stronger links with local partners and collaborators.
“We’re Glasgow based, with a small team in London. This is our home. We’re passionate about growing out of Glasgow. It is about being able to give something back to the next generation. As a result of this particular challenge, we’ve been able to take on two Glasgow-based developers that are part of the team”.
— Caroline Steel, Chief Operating Officer, Profylr.
The Outcomes – Impact
In just three months, FRIL enabled Profylr to move from concept to proof of concept, and secure momentum well beyond the challenge itself.
Impact summary
- 2 x High-value jobs created in Glasgow
- Proof of Concept developed in 12 weeks
- £50, 000 prize fund secured
- 1 x collaborative partner onboarded
- 2 x commercial opportunities generated
- Ongoing relationships and collaborations with fintechs, industry and academia.
“Because we had a working proof of concept, I was able to approach every financial institution involved in the challenge. That has already led to two new opportunities”.
— explains Caroline.
Next steps – Watch this space for:
Profylr is now building further collaborations and product development in the Glasgow City Region, with eyes on the next FRIL Challenge:
“I was on a family holiday, and I saw the Operational Resilience Call announced. I immediately messaged the team to say: “We’re doing this again!” The opportunities it brings are second to none”.
— concludes Caroline.
Case Study Conclusion
FRIL doesn’t just fund ideas – it accelerates them into real solutions, creates skilled jobs, and strengthens Glasgow’s position as a hub of financial innovation. Profylr’s journey shows how targeted support translates into tangible growth and industry impact.
About FRIL
FRIL is part of the larger Glasgow City Region Innovation Accelerator programme with Glasgow, one of three pilot regions’ – including West Midlands – sharing a £100m investment aimed at transforming R&D within the UK. Led by Innovate UK, this programme supports the UK Government’s
levelling-up agenda by empowering local regions to drive economic growth through innovation. This approach not only supports regional development but also positions the UK as a leader in the global innovation landscape.
Download the Profyler case study.
Five Fintechs Awarded £50,000 Grants to Strengthen Operational Resilience Across the UK Financial Sector
The Financial Regulation Innovation Lab (FRIL) is pleased to announce the five organisations selected to receive grants following its latest Innovation Call. These grants will support the development and deployment of solutions that strengthen industry resilience, operational capability, and regulatory responsiveness.
The Innovation Call, developed in collaboration with FinTech Scotland, Supertech WM, the University of Glasgow and the University of Strathclyde concluded on the 2nd of October at a Showcase Day.
Over a 6 week programme, innovators worked with industry leaders Sword Group, NatWest, Morgan Stanley, M&G, Pinsent Masons, Tesco Bank, Aberdeen, KPMG, EY, Dudley Building Society, Tipton & Coseley Building Society and Unity Trust Bank, to develop, refine and adapt their solutions to real industry needs.
Following the showcase Day, 5 Scottish companies were selected to receive £50,000 each to develop their solutions further. These firms will continue to work with industry partners throughout the grant period to support their development. Those firms are:
Profylr
Profylr builds intelligent, AI-powered solutions that connect the minutiae of regulation with firms’ data, transforming compliance from reactive oversight into predictive intelligence. Powered by their Information Genetics® proprietary technology, Profylr makes compliance live, linked, and undeniable giving firms the clarity, confidence, and control regulators can trust.
An intuitive, easy to use solution that secures data across Cloud and updates its security classification on demand, protecting it from threats like ransomware even when out of sight or control of its owner. Acclaimed by cybersecurity leaders as the “next essential building block in secure Cloud,” Ionburst delivers what no Cloud provider can, a unified secure Cloud.
HAELO
HAELO delivers automated global regulatory horizon scanning. It tracks changes across hundreds of regulators and millions of documents, distilling actionable insights, reducing manual burden, and helping firms stay ahead of regulatory changes.
Continuity2
Continuity2 Ltd is a provider of a multi disciplined software platform for operational resilience. The platform includes business continuity, ITDR, enterprise risk and incident management.
Lupovis
Lupovis delivers real-time contextual cyber security threat intelligence enabled by a deception environment, providing early identification of advanced attacks and insider threats while reducing false positives.
Nicola Anderson, Chief Executive of FinTech Scotland, said:
“Operational resilience is essential for a trusted financial services industry. Through the Financial Regulation Innovation Lab, we’re seeing fintech innovation directly address these priorities, shaping practical solutions that strengthen the UK’s financial infrastructure. The quality of collaboration between innovators, industry partners and regulators in this programme demonstrates the power of purposeful innovation.”
Rob Mossop, COO, Financial Services and International, Sword Group said:
“Sword is proud to have supported this innovation call and are looking forward to seeing how the successful grant recipients will develop their ideas into practical solutions. Operational resilience is a critical concern for customers across Financial Services, and it has been exciting to work with Fintech Scotland and fellow partners – both industry and academic – to see how the participating organisations have addressed critical use cases with innovative solutions and a passion for building more resilient financial infrastructure.”
Building on the success of this operational resilience programme, FRIL has now launched its next UK-wide Innovation Call focused on the future of Wealth support and advice.
Innovating firms across the UK are encouraged to apply and collaborate with industry partners to shape the future of inclusive, data-driven financial advice and guidance.
Anne Lanc – Co-Founder, Ionburst said:
“We’re delighted and honoured to be selected to receive the grant to develop our solution further. FRIL was a great opportunity for us to connect with a wide range of Financial Institutions and advisors to both understand their specific challenges, and showcase Ionburst’s cutting edge innovation in addressing a problem plaguing digital economies globally – how to secure, protect & recover data in any Cloud. FRIL was a great experience, very well run and one I’d recommend to other Fintechs with relevant solutions”
Rhona Kennedy, Head of Business Development, C2:
“FinTech Scotland’s FRIL initiative is an amazing opportunity to build solid relationships, gain feedback on products and insight into the incredible talent and ambition in the Scottish FinTech community. The funding is amazing, but it is the partnerships and support which really make this programme worthwhile.”
Mick O’Connor, Founder, HAELO:
“FRIL was a gamechanger for HAELO. To be able to attend deep dive sessions with customers and directly hear their candid experiences is commercial gold dust”
Caroline Steel, COO, Profylr:
“The FRIL challenges are instrumental to fintech growth in Scotland. The opportunity to gain further industry insight and collaborate with a strategic partner is invaluable.”
Ivan Andonovic, CSO, Lupovis:
“FRIL provides evolving companies wishing to secure market traction in the financial sector such as Lupovis with a co-development environment with end users that allows the creation of fit-for-purpose solutions that reduce the barrier to adoption.”
The Financial Regulation Innovation Lab is part of the larger 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 between 2022-25 to accelerate the growth of three high-potential innovation ecosystems – Glasgow City Region, Greater Manchester and West Midlands. The programme was boosted by an additional £30m of public funding for 2025/26 spread equally across the regions. Innovation Accelerators is piloting a new model of R&D decision making that empowers local partnerships to harness innovation to drive regional economic growth, attract private investment, and develop future technologies.
Nationwide Innovation Call Launches to Bridge the UK’s Financial Advice Gap
A coalition of leading financial institutions including PWC, NatWest, Barclays, Standard Life, M&G, Lloyds Banking Group, Dudley Building Society and BNP Paribas Personal Finance have joined forces to launch a UK-wide innovation challenge to explore how technology can reshape consumer access to financial support A coalition of leading financial institutions including PWC, NatWest, Barclays, Standard Life, M&G, Lloyds Banking Group, Dudley Building Society and BNP Paribas Personal Finance have joined forces to launch a UK-wide innovation challenge to explore how technology can reshape consumer access to financial support at the critical advice-guidance boundary. Delivered in partnership with FinTech Scotland through the Financial Regulation Innovation Lab (FRIL), and collaborating with SuperTech WM to help expand the reach and impact across the UK, this initiative calls on fintech innovators to co-create next-generation solutions that can help consumers make more confident and informed financial decisions.
The Advice-Guidance Boundary Review (AGBR) is the Financial Conduct Authority’s key vehicle to deliver on its “promote growth” objective within the 2025–2030 strategy and has sparked significant conversation across the industry due to the fundamental changes it could bring. At its core, the review responds to a growing concern that there is an advice gap with too many consumers in the UK not receiving the financial help they need. Examining the boundary between financial advice and other forms of support will allow the AGBR to enable financial organisations unlock new, more effective ways of meeting consumer needs, particularly when it comes to managing their future finances.
To continue the conversation, the new FRIL Innovation Call invites fintech innovators to develop next-generation solutions that make financial support more personalised, inclusive, and accessible, helping firms better understand diverse client bases and consumer needs and values and ensuring regulatory compliance and protecting consumers.
Developed in close collaboration with regulators, academics, and industry partners, the programme will test how digital tools, data-driven models, and new approaches to consumer engagement can help bridge the advice gap, support firms in growing their client bases and aligning with the FCA’s evolving expectations. The challenge is looking for practical, scalable solutions that empower consumers to make better-informed financial decisions whether through targeted support that stops short of regulated advice, or through models of simplified advice that are easier to deliver and to understand. In doing so, it will help firms meet Consumer Duty obligations while opening more inclusive ways to serve consumers.
FRIL’s innovation challenge will explore use cases including:
- Targeted Support at scale through AI and data-driven insights
- Interactive, user-centric customer disclosures
- Consumer education, literacy, and trust-building tools
- Compliance technologies that support advice-boundary monitoring
- Automated planning and scenario-modelling tools
- Cross-platform data aggregation enabled by Open Finance
Successful applicants will have the opportunity to work directly with major financial institutions, gaining valuable insights into the future of Wealth Advice, access academic expertise at the University of Strathclyde and the University of Glasgow, and may also be eligible for up to £50,000 in grant funding to accelerate the development of their solution. The programme will culminate in a showcase event in Glasgow, where participating fintechs will present to industry, regulatory, and academic leaders.
FinTech firms from across the globe are encouraged to apply before the deadline on 3 November. More details can be found here.
Nicola Anderson, CEO of FinTech Scotland: “This challenge is a milestone in the journey towards a more inclusive financial services sector. By bringing together fintech innovators, regulators, and industry leaders, we can design practical solutions that empower consumers to make informed decisions while ensuring firms navigate the advice boundary responsibly.”
Fraser Wilson, Financial Services Partner & Head of FS Regions at PWC: “The Advice Guidance Boundary Review is an opportunity to reshape how our industry empowers people to make confident financial decisions. By harnessing technology and collaborating with fintech innovators through the FRIL programme, we can help firms deliver more personalised, accessible support – closing the advice gap and strengthening financial resilience for individuals and communities”.
Andy Young, Head of Digital and User Experience at Standard Life: “This challenge is a real opportunity to rethink how our industry supports people through retirement. We’re excited to collaborate across the sector to drive digital innovation, expand access to financial guidance – especially for underserved groups – and help build a future where everyone feels confident in their choices.”
Tim Grey, Strategy and Transformation Director at M&G Advice: “We’re pleased to be part of this innovation programme exploring the Advice Guidance Boundary Review. At M&G, we believe innovation in this space is important to helping bridge the advice gap and assist customers to achieve better outcomes.”
Hilary Smyth Allen, CEO of SuperTech:“This innovation call is a natural extension on our partnership with FRIL and FinTech Scotland, building on previous work leveraging innovation to improve customer outcomes which remains a high priority for West Midlands’ financial services institutions. It’s another unique opportunity and one where the cross-UK approach is adding depth and breadth to the experience for businesses and innovators in developing next generation services”.
Maria Herrero Bullich, Chief Customer & Digital Officer, Insurance, Pensions & Investments at Lloyds Banking Group: “Through our Scottish Widows business we’re helping build a better financial future for our customers. This challenge provides a fantastic opportunity to unlock more tailored, inclusive and digitally-enabled ways to support people in the UK navigate their financial futures with confidence. By collaborating across the industry, we aim to help close the advice gap and deliver better outcomes for everyone.”
The Financial Regulation Innovation Lab is part of the larger 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 between 2022-25 to accelerate the growth of three high-potential innovation ecosystems – Glasgow City Region, Greater Manchester and West Midlands. The programme was boosted by an additional £30m of public funding for 2025/26 spread equally across the regions. Innovation Accelerators is piloting a new model of R&D decision making that empowers local partnerships to harness innovation to drive regional economic growth, attract private investment, and develop future technologies.
Supply Chain Intelligence: Actionable Risk Assessment of Brazilian Commodity Supply Chains Using Geospatial Data
Geospatial data is transforming sustainability risk assessment in Financial Services. Driven by mandatory regulations such as the EU’s CSRD and SFDR, alongside emerging standards such as TNFD, financial institutions must now monitor not just financial performance, but real-world environmental and social impacts across global supply chains.
This white paper showcases how geospatial data and asset-level geospatial analysis can be used as a support tool for supply chain impact monitoring. Specifically, we evaluate deforestation risks in Brazilian commodity supply chains. Using publicly available datasets and Google Earth Engine, we develop a reproducible risk scoring framework, applied to over 17,000 slaughterhouse facilities, tied to 9,854 companies, across Brazil.
This analysis:
- Quantifies deforestation exposure across 12 animal-based commodities at facility and company level.
- Creates actionable risk metrics for investors, lenders, and regulators.
- Aligns outputs with ESG disclosure frameworks, including CSRD, SFDR, TNFD, and the EUDR.
- Highlights high-risk companies and regions, providing clear signals for due diligence and sustainable finance strategy.
This paper is part of a broader move toward Earth Intelligent Finance, empowering financial actors to make faster, smarter, and more transparent sustainability decisions using geospatial insight.
Regulatory Insights: September 2025 – Balancing Growth, Innovation and Consumer Protection
Our strategic partner Pinsent Masons has released the September edition of its FS Regulatory Risk Trends update, highlighting the latest developments shaping the UK regulatory landscape.
This third edition of 2025 comes at a time when government and regulators are under pressure to balance economic growth, innovation and competitiveness with strong consumer protection and the integrity of the financial system.
FCA focus: innovation with safeguards
The FCA continues to implement its five-year strategy, with an emphasis on innovation and efficiency. This quarter’s insights point to several areas of interest:
- AI regulation and adoption: the FCA is engaging with the opportunities and risks around AI in financial services.
- Payments innovation: consultations on contactless payments and targeted support show a regulatory push for consumer benefit and wider adoption.
- Market infrastructure: the FCA has approved the first PISCES platform, a milestone for digital settlement systems.
Wider government initiatives
Alongside the FCA’s actions, HM Treasury is consulting on significant changes to the redress framework overseen by the FCA and the Financial Ombudsman Service (FOS). These proposals could have a major impact on how firms manage complaints and consumer redress.
Risks on the horizon
While innovation is encouraged, firms also face heightened scrutiny. Recent regulatory activity includes:
- Market reviews into retail insurance, digital customer journeys and premium finance.
- Ongoing exploration of the future of cryptoasset regulation.
- Criminal prosecutions linked to financial crime.
- Preparations for an industry-wide redress scheme following the Supreme Court motor finance case in August.
To discover the full update click here.
Addressing tomorrow’s pressing challenges, today: Operational Resilience Innovation Call launches
“We expect to be able to withdraw cash from the cash machine. We expect to be able to see that our salaries have hit our bank account – to have things available in the palm of our hands.”
But what happens when known or unknown threats – such as wars, climate change or cyber attacks – challenge the delivery of our financial services?
That is why Operational Resilience continues to be a top regulatory priority for the financial and professional services sector.
It’s also why the subject is the focus of Financial Regulation Innovation Lab (FRIL)’s most recent Innovation Call, launched last month. Bringing together leading minds from across the fintech and financial services sectors, regulators and academia, we are tackling some of the most pressing challenges to create solutions for the future.
Pioneering solutions for customers and financial services
“It’s about getting ahead of the game. The big thing about operational resilience is that it asks organisations to think beyond what they’ve experienced before and try to design for how they might respond to scenarios that they haven’t already planned for.”
Rob Mossop, Chief Operating Officer, Sword Group
This Innovation Call sees 15 cutting-edge fintech businesses selected to collaborate directly with leading financial institutions, professional services firms, and academics to design practical solutions that build resilience across the sector.
“It’s about partnering and working closely together to develop outcomes and solutions that work for the best for those banks or investment managers.”
Simba Mamboininga, CEO and founder of Devlin Mambo
This is our fifth Innovation Call and will address challenges affecting the sector including:
- strengthening supply chain monitoring
- improving data quality
- addressing cross-border compliance
- advancing scenario planning
- fostering resilient cultures
- managing risks across cloud and hybrid environments.
“Creating those solutions, bringing deep knowledge and pouring thinking into products and services which can help firms deal with issues around resilience.”
Shriparna Kosh, partner at EY.
Launch and Next Steps
The programme officially launched on 26 August at Sword’s Glasgow offices, where the fintechs met with industry leaders and academic experts to kick-start their collaborative journeys.
View the kick‑off event brochure.
Watch the recording from the day below.
Over the coming weeks, participants will take part in workshops and deep dive insight sessions designed to refine their solutions and align them with real-world industry needs. The most promising ideas may also receive grants of up to £50,000 to accelerate development.
Who is involved?
The Operational Resilience Call is hosted by the Financial Regulation Innovation Lab in partnership with SuperTech West Midlands.
We are proud to be working with 12 strategic partners – Sword Group, Tesco Bank, Unity Trust Bank, EY, Aberdeen, Morgan Stanley, Pinsent Masons, Dudley Building Society, Tipton Building Society, KPMG, M&G, and NatWest – alongside academic partners at the University of Strathclyde and the University of Glasgow. Their combined expertise ensures that innovation is rooted in both cutting-edge research and real-world regulatory priorities.
“I really relished the opportunity to work alongside industry partners in FRIL, because there was this opportunity to take real life use cases and put academic research around them.”
Steve Owens, Knowledge Exchange Fellow at the University of Strathclyde.
Our 15 successful Fintechs include:
- Argus Pro: Aegis 9™ and NexEdge™ use AI to assess compliance frameworks and detect regulatory gaps.
- Blankstate: Its Consensus AI model and Intention Blended Framework (IBF) reimagine operational excellence by understanding intent, nuance, and context.
- BR-DGE: An independent payments technology hub that boosts resilience by giving merchants and institutions more control over global payment connections.
- Continuity2: A trusted resilience partner for over 20 years, providing SaaS software for business continuity and operational resilience.
- Devlin Mambo: Scalable software that automates supplier governance, compliance monitoring, and reporting.
- DORA.report: A platform built to help firms and providers meet EU DORA reporting obligations.
- FinTrack & FinPay: Secure cash logistics and a unified resilience platform for crisis simulations, dependency mapping, and regulator-ready evidence.
- HAELO: IO® uses AI to map requirements to obligations and controls, helping firms simulate and act on operational risks.
- ICEFLO: A ServiceNow-native runbook management platform for rehearsing and executing complex recovery scenarios.
- Ionburst: Unified secure hybrid-Cloud solutions that deliver compliance-ready, auditable data protection
- Jellifysh: Application security platform tackling software supply chain vulnerabilities.
- Lupovis: Real-time cyber threat intelligence powered by network decoys.
- Profylr: Information Genetics® engine that connects regulatory requirements to data, creating transparent compliance blueprints.
- SENGUARD: Shifts resilience strategies from reactive to preventive with threat intelligence.
- TEXpert AI: GenAI-powered risk extraction from unstructured data to surface hidden risks in portfolios and supply chains.
What next?
If you’ve liked what you’ve read, follow us on LinkedIn for the latest updates. For more information about getting involved in future innovation calls, email FRIL@fintechscotland.com
Major Financial Institutions Unite to Drive Innovation in Operational Resilience
A coalition of leading financial institutions including Sword Group, Natwest, Morgan Stanley, Dudley Building Society, The Tipton, Unity Trust Bank, M&G, Pinsent Masons, Tesco Bank, Aberdeen, KPMG and EY have joined forces to launch a UK-wide innovation challenge focused on strengthening operational resilience across the financial sector. Delivered in partnership with FinTech Scotland through the Financial Regulation Innovation Lab (FRIL), and collaborating with SuperTech WM to help expand the reach and impact across the UK, this initiative calls on fintech innovators to co-create next-generation solutions that can safeguard the financial system in an increasingly digital world.
Operational resilience is a top priority for the UK’s regulators, including the FCA, Bank of England and HM Treasury, as the sector adapts to growing digital disruption, complex supply chains, and rising consumer expectations. This challenge reflects a shared commitment from industry to proactively address these risks through collaboration and innovation.
In the face of escalating demand for seamless digital services, the challenge is designed to source practical, scalable solutions that can help firms stay resilient, responsive, and secure. It will offer selected fintechs the opportunity to work directly with financial institutions, gain valuable insights into real-world resilience challenges, and receive expert input from leading academics from the University of Strathclyde and the University of Glasgow.
Successful applicants may also be eligible for up to £50,000 in grant funding to accelerate the development of their solution. The programme will culminate in a showcase event in Glasgow, where participants will present to industry and regulatory stakeholders.
FinTech firms from across the globe are encouraged to apply before the deadline on August 15th. More details can be found here.
Nicola Anderson, CEO of FinTech Scotland: “This challenge is a powerful example of how collaboration can drive meaningful change. By bringing together fintech innovators, academic insight, and industry expertise, we’re not only responding to the increasing demands of the digital economy, we’re actively shaping a more resilient and adaptive financial system for the future.”
Rob Mossop, COO Financial Services and International, Sword: “As a trusted technology partner, we recognise that operational resilience is moving beyond meeting regulatory requirements. It has become a business imperative with clear impact on business growth. We understand the critical role that trusted and adaptable solutions play in helping financial institutions respond to disruption and build competitive advantage. We are excited to see how this challenge brings together the best of industry, academia, and innovation to utilise technologies that don’t just withstand disruption but enable agility and enhance trust in the face of it”
Hilary Smyth-Allen, CEO SuperTech:“Our longstanding partnership with FinTech Scotland, to expand the reach of the Financial Regulation Innovation Lab, has delivered fantastic impact in previous programmes for both the fintech innovators and financial services participants. We look forward to seeing the collaborative opportunities arising from this open innovation challenge focusing on operational resilience.”
Nicole Alston, Innovation Engagement Manager, NatWest: “Natwest Group are proud to support this challenge, which represents a fantastic opportunity to work hand-in-hand with fintech innovators to shape the next generation of operational resilience. By combining industry insight with fresh thinking, we can build smarter, more adaptive systems that protect customers and maintain trust”
Luke Scanlon, Pinsent Masons: “Strengthening operational resilience isn’t just a regulatory expectation, it’s a shared responsibility across the financial ecosystem. This challenge is a compelling example of how partnerships between fintechs and industry, can drive innovation that’s both agile and aligned with evolving regulatory frameworks. It’s a chance to build practical solutions that work in the real world”
Samuel Kennedy, Head of Operational Risk, Dudley Building Society: “For building societies, operational resilience is fundamental to maintaining the trust of our members and communities. This challenge is a chance to work alongside fintechs to explore innovative solutions that protect continuity of service, while ensuring we remain agile and responsive in a changing digital landscape.”
Will Lynch, Group Deputy COO, Aberdeen: “Aberdeen’s involvement in FRIL has shown the power of collaboration in tackling complex regulatory and operational challenges. We are looking forward to contributing the next phase of FRIL in an increasingly important part of the regulatory landscape.”
David Owen, Head of Business Risk at Unity Trust Bank: “Operational resilience isn’t just about meeting regulatory compliance; it is about reinforcing our customers’ confidence that we can withstand disruptions and continue to serve them effectively. At Unity Trust Bank, resilience is fundamental to our double-bottom-line approach: it supports sustainable business growth while deepening the trust that our socially minded customers place in us. By collaborating with fintech innovators, industry partners, and thought leaders, we are developing smarter, more adaptive systems that not only ensure continuity but also strengthen the core principles of ethical banking.”
Tom McFarlane, Partner, EY – “Building on the success of our collaboration with FRIL, we’re delighted to be supporting this innovation challenge focused on strengthening operational resilience. The FRIL programme presents a unique opportunity to deepen our relationships with innovators across the cluster – bringing together diverse thinking, regulatory insight, and practical expertise. Through these collaborations, we can co-create solutions that are not only innovative, but also scalable and grounded in the realities of today’s financial landscape.”
The Financial Regulation Innovation Lab is part of the larger 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 between 2022-25 to accelerate the growth of three high-potential innovation ecosystems – Glasgow City Region, Greater Manchester and West Midlands. The programme was boosted by an additional £30m of public funding for 2025/26 spread equally across the regions. Innovation Accelerators is piloting a new model of R&D decision making that empowers local partnerships to harness innovation to drive regional economic growth, attract private investment, and develop future technologies.
How Agentic AI can redefine Financial Services
In this episode we explore the transformative potential of Agentic AI in the financial services industry.
We look at how this emerging technology is enhancing personalisation, optimising operational processes, and redefining financial inclusion. We dive into into areas such as customer support with conversational AI as well as the transformation of risk modelling and compliance.
We discuss whether Agentic AI is paving the way for a smarter, more connected financial ecosystem.
We also discuss the challenges and opportunities this technology brings, including ethical considerations, regulatory hurdles, and the need for collaboration between academia, industry, and policymakers to ensure responsible innovation.
Guests:
- Alexandra Birch – Reader at the University of Edinburgh
- Derek Shanks – Technology Platform Lead at Lloyds Banking Group
- Joseph Twigg – Founder and CEO at Aveni
- Rich Wilson – Founder and CEO at Gigged.ai
Advancing ESG
Everyone’s talking about ESG, but how do we move from ambition to meaningful impact?
This new report from the Financial Regulation Innovation Lab (FRIL) unpacks that challenge and points to a clear answer: regulatory innovation.
While ESG (Environmental, Social, and Governance) principles have risen to the top of board agendas, the path to embedding them meaningfully into financial services is still full of complexity with ambiguous frameworks, inconsistent data, and evolving disclosure standards. But amid that complexity lies an opportunity for change.
This paper flips the conversation. Instead of focusing on ESG as a reporting burden, it highlights how purpose-driven innovation, especially from fintechs, can reframe ESG as a strategic advantage.
Highlights include:
- How fintechs are creating tools that democratise ESG insights, enabling smaller firms to lead, not lag.
- The power of transparency tech, enabling consumers and investors to make informed choices in real time.
- Regulatory leadership as a catalyst—not a constraint—for embedding long-term sustainability in financial decision-making.
Through FRIL’s ESG Innovation Call, the report captures the pulse of the ecosystem: entrepreneurs, regulators, academics, and institutions coming together to explore how data, collaboration, and innovation can unlock the next wave of ESG progress.