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 November 10th. 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.

Read the full whitepaper

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 15^th. 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.”

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

Listen now

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.

Read the report

Addressing Financial Crime

Financial crime is no longer just a back-office issue, it’s a frontline threat to trust, security, and resilience across the financial system. With scams growing more sophisticated and regulation constantly evolving, simply reacting isn’t enough. The sector needs to outthink and outpace criminal innovation.

Produced through the Financial Regulation Innovation Lab (FRIL) led by FinTech Scotland, the University of Strathclyde, and the University of Glasgow, this report looks into how the UK financial services industry is embracing innovation to meet the challenge head-on.

Rather than listing problems, the focus is on real-world progress:

Fintechs using AI and privacy-first data sharing to spot fraud faster.
Financial institutions embedding intentional “friction” into digital journeys to protect vulnerable consumers.
Regulators promoting sandbox collaboration and cross-sector signal sharing to shift from reactive controls to intelligent, joined-up defences.

What makes this report stand out is the ecosystem it brings together:
15 fintech innovators, banks, telcos, regulators, and academic partners all contributing to one goal: disrupt financial crime before it happens.

Read the report.

Shaping better consumer outcomes

This report explores how the financial services sector can harness innovation to deliver better outcomes for consumers in line with the FCA’s Consumer Duty.

Produced through the Financial Regulation Innovation Lab (FRIL), a collaboration between FinTech Scotland, the University of Strathclyde, and the University of Glasgow, the report outlines a practical and forward-looking roadmap for industry-wide transformation.

The introduction of the Consumer Duty marks a shift from traditional compliance to a proactive, outcomes-based regulatory approach. This paper highlights how fintech innovation, data insights, and collaborative ecosystems can help financial institutions meet evolving regulatory expectations and rising consumer demands.

Key themes include:

A changing regulatory and consumer landscape, with rising expectations for transparent, inclusive, and adaptive financial services.
Challenges for financial institutions, such as legacy systems, siloed data, and fragmented compliance efforts.
Opportunities for innovation, where fintechs play a crucial role in driving consumer understanding, supporting vulnerable customers, and automating compliance.
A call for ecosystem-wide collaboration, moving beyond isolated efforts to create shared standards, interoperable systems, and seamless consumer experiences.

The report features insights from the FRIL Consumer Duty Innovation Call, showcasing fintech partnerships that are already delivering tangible improvements in customer support, communication clarity, and regulatory monitoring. It concludes with a multi-year roadmap outlining the necessary steps for embedding Consumer Duty principles across the financial ecosystem.

Read the report.

FinTech Scotland and TSB Launch latest Innovation Labs programme to Combat Fraud and Enhance Trust in Digital Banking

FinTech Scotland unveiled today the latest innovation programme in collaboration with TSB Labs at Money20/20, Europe’s largest fintech conference.

TSB Labs, the award-winning fintech accelerator, is once again partnering with FinTech Scotland to identify, support and scale innovative solutions tackling some of the most urgent challenges in banking. This year, the focus is on preventing one of the nation’s most prevalent crimes – fraud, while delivering a seamless customer journey.

The programme builds on the success of previous cohorts, which resulted in several pilot projects as well as being recognised at the Scottish Financial Technology Awards for Best Financial Services Innovation..

The 2025 innovation programme is now open to fintechs from across the globe who are ready to deploy real-world solutions in a live retail banking environment. Interested parties can apply here.

Nicola Anderson, Chief Executive of FinTech Scotland, commented:

“We are delighted to be partnering once more with TSB and announce this innovation programme at Money20/20. TSB Labs is a powerful example of how established financial institutions can partner with fintechs to deliver real impact for customers. Thanks to our work on the topic of fraud as part of the Financial Regulation Innovation Lab, we’ll be bringing a significant amount of knowledge, expertise and connections to this programme from across the Scottish Fintech Cluster.”

The Lab’s three challenge statements invite creative, practical solutions in:

Smart Messaging and Education: improving fraud detection through timely, trusted, and effective customer communication.
Empowered Customer Controls: making faster decisions about authorised payments by giving customers more control and clarity.
Seamless Resolution: transforming fraud reporting and resolution into a streamlined, customer-centric journey.

Richard Daniels, Fraud and Financial Crime Operations Director at TSB, said:

“Fraud is constantly evolving, and so must we. The TSB Labs programme is a brilliant opportunity for us to work shoulder-to-shoulder with innovative fintechs to find smarter, faster and more effective ways to continue protecting our customers.”

The programme offers two phases of structured engagement, culminating in a final pitch to TSB decision-makers and the opportunity to progress to pilot deployment.

Full details and the short application form can be found on FinTech Scotland’s website . Applications close on 25 June 2025.