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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.

Morgan Stanley Marks 25 Years in Glasgow with a Uniquely Scottish Celebration

This year, Morgan Stanley celebrates 25 years in Glasgow, a quarter of a century that has seen the firm grow from just six colleagues in 2000 to more than 2,000 today. From the outset, the Glasgow office has played a vital role in the firm’s global network, supporting technology, finance, operations, legal, and compliance functions while building deep partnerships with the city and its people.

Morgan Stanley is celebrating throughout 2025 with a series of events recognising the people and partners who have shaped its success. One highlight was a reception with Scottish Financial Enterprise (SFE), attended by First Minister John Swinney, SFE CEO Sandy Begbie, and Vida Rudkin, Head of Morgan Stanley Glasgow.

A tartan for the next chapter

An important moment of the celebrations is the unveiling of a bespoke tartan, designed in collaboration with The House of Edgar. Inspired by the firm’s brand colours, the Morgan Stanley tartan is rich with symbolism: a 25-thread black stripe to mark the Glasgow office’s 25th anniversary, two blocks of blue totalling 90 threads to honour the firm’s 90th global anniversary, and six colours to represent the six original employees who founded the office in 2000.

Celebrating with Glasgow

The tartan will take centre stage on 25 September at a special reception in Glasgow City Chambers, hosted in partnership with Glasgow City Council and the Glasgow Chamber of Commerce. This event forms the main celebration of Morgan Stanley’s anniversary year, coinciding with both Glasgow’s 850th anniversary and the FinTech Scotland Festival 2025. It promises to be a unique moment, bringing together the global financial community and the city to reflect on past achievements and look ahead to future opportunities.

Scotland’s Evolving Coworking Landscape: Glasgow, Edinburgh & Aberdeen Lead the Way in Q2

As Scotland’s fintech and innovation economy continues to thrive, so too does its flexible office infrastructure by offering agile, scalable workspaces that meet the needs of growing startups, enterprise teams, and remote workers alike.

According to CoworkingCafe, Scotland is now home to 279 coworking spaces, placing it firmly on the map as one of the UK’s most active regions for flexible work. The report draws on proprietary July 2025 data and offers in-depth insight into inventory levels, subscription pricing, and operator presence across the UK and Ireland.

Scotland’s Coworking Snapshot: Q2 2025
Total inventory: 279 coworking locations

National median prices across Scotland:
Monthly memberships: £150
Day passes: £23
Virtual offices: £95
Meeting rooms: £25/hour
Top Scottish operator: Wasps, with 18 locations

As fintech companies continue to scale and decentralise, demand for high-quality, flexible workspace solutions is rising outside of London and the South East. Scotland’s coworking scene — especially in Glasgow, Edinburgh, and Aberdeen — offers a cost-effective, collaborative alternative to traditional office setups. Let’s take a closer look at how these top-performing coworking hubs are shaping the future of flexible work in Scotland.

Glasgow: Scotland’s Largest Coworking Market

With 61 coworking spaces, Glasgow ranks #4 in the UK overall and stands out as Scotland’s leading hub for flexible office solutions. The city combines affordability with an increasingly sophisticated offer — making it attractive to both startups and established businesses.

  • Monthly memberships: £160 — below the UK median (£180), but slightly above the Scottish median (£150)
  • Day passes: £23 — tied for the most affordable in the UK
  • Virtual offices: £119 — significantly higher than the national and Scottish averages
  • Meeting rooms: £23/hour — one of the UK’s most cost-effective options

Edinburgh: High Demand, Premium Pricing

Edinburgh ranks #5 nationally, with 55 coworking locations offering a premium experience in the heart of Scotland’s capital. The city’s thriving fintech sector and knowledge economy are reflected in above-average pricing.

  • Monthly memberships: £192 — well above both Scottish and UK medians
  • Day passes: £30 — a capital-level price, in line with greater London
  • Virtual offices: £99 — slightly above the UK and Scottish averages
  • Meeting rooms: £40/hour — among the most expensive in the UK outside of London

Aberdeen: A Growing Presence in the UK Top 15

With 26 coworking spaces, Aberdeen ranks #11 in the UK and completes Scotland’s trio of cities in the national top 15. Its coworking market is maturing steadily, balancing competitive pricing with national benchmarks.

  • Monthly memberships: £160 — on par with Glasgow
  • Day passes: £28 — higher than average, reflecting solid demand
  • Virtual offices: £95 — matching both the UK and Scottish medians
  • Meeting rooms: £30/hour — aligned with the national average

For a deeper look at coworking trends across the UK and Ireland — including operator rankings, detailed city-level data, and full pricing breakdowns — explore the full Coworking Industry Report for Q2 2025.

Photo by CoWomen: https://www.pexels.com/photo/woman-using-laptop-photography-2041398/

Accelerating growth in Scotland’s financial services sector

EY’s new report “Accelerating growth in Scotland’s financial services sector” is a growth playbook for one of Scotland’s most important industries. Developed by EY and based on a September 2024 survey and in‑depth interviews with senior leaders across banking, insurance, asset‑management and fintech, the study runs each insight through EY’s Financial Services Accelerant Framework to model where the greatest levers for expansion lie.

What it says about Scotland’s financial services economy

The report states that if Scotland can pull the right “accelerators”, gross value‑added (GVA) could be 21 % higher by 2028, adding 16,000 jobs and lifting average annual growth to roughly 4 % well above the historic 2 –3 % trend.

EY’s recommendations focus on a three year policy sprint: visa reform to attract global talent, narrowing tax differentials with the rest of the UK, bolstering digital and physical infrastructure, and targeted R&D funding, especially for fintech innovation.

Fintech

Fintech is one of three key growth sectors identified in the report (alongside green & sustainable finance and asset management). Scotland already hosts a thriving fintech cluster spanning payments, Open Finance, WealthTech and RegTech, recognised internationally as an industrial cluster.

Sector leaders see talent as the decisive variable. Demographics and labour supply rank as the No. 1 factor in creating a globally competitive hub, with regulatory clarity in second place.

FinTech Scotland’s CEO Nicola Anderson, who contributed in the report said :

“Scotland’s industry‑wide innovation strategy for fintech and financial services is set out in the FinTech Research and Innovation Roadmap… The University of Edinburgh, for example, has more AI expertise than anywhere else in Europe and has a history of AI expertise in other sectors.”

Read the full report

Supporting Scale: Addleshaw Goddard Opens Applications for 2025 AG Elevate Accelerator

Addleshaw Goddard has launched the latest edition of AG Elevate, its accelerator programme aimed at supporting ambitious tech scale-ups with legal expertise, strategic mentorship, and industry connections.

Now in its eighth year, the ten-month programme is designed for businesses with growth ambitions and existing funding in place, offering them legal insight, access to industry events, and monthly one-on-one guidance from AG’s senior legal professionals.

A Track Record of Impact

Since its inception in 2017, AG Elevate has worked with more than 60 companies across fintech, clean-tech, prop-tech, and beyond. Notable alumni include Tumelo, Amiqus, Finance Unlocked, and Fuuse. Several participants have gone on to raise significant funding or complete acquisitions, such as SymPhysis Medical and EpiCapture.

Scottish representation in the 2024 cohort included CataNiTek (specialist chemical manufacturing), Coastr (vehicle rental technology), and Frontier Robotics (autonomous underwater exploration) highlighting the programme’s commitment to fostering innovation across the UK’s regions.

What’s on Offer

Participants in AG Elevate receive:

  • A dedicated legal mentor with monthly strategy sessions
  • 25 hours of complimentary legal support
  • Access to AG seminars, insight sessions, and networking events
  • Legal publications and updates from AG’s sector experts
  • A 30% discount on any further legal work during the programme

David Anderson, Partner at Addleshaw Goddard, said:

“Early-stage and scale-up companies often face legal challenges that can delay growth or investment. AG Elevate is about addressing those challenges early with the right support. We’re particularly keen to hear from businesses in fintech and digital assets this year—areas where we’ve built deep capability.”

Eligibility and How to Apply

AG Elevate is open to tech businesses based in the UK, Ireland, France, Spain, or Germany that have received seed or later-stage investment and have clear plans for rapid growth.

Applications are open now and will close at the end of July 2025.
Apply here

Applications Open for the JPMorganChase Fintech Forward Programme

Applications are now open for the JPMorganChase Fintech Forward Programme, a new 12 week in-person and virtual accelerator designed to help fintech leaders realise their business vision.

Backed by JPMorganChase’s extensive network, the programme offers tailored support to help scale high-potential fintech companies across the UK.

Selected fintech leaders will gain access to a suite of resources designed to drive sustainable business growth. These include:

  • Executive sponsorship for a senior JPMorganChase leader
  • Mentorship from an experienced advisory team
  • A customised programme focused on strengthening a founder’s network and impact
  • Opportunities to present to JPMorganChase stakeholders, external investors and partners
  • A sponsored trip to Slush, one of Europe’s leading startup events, held in Helsinki

To reduce barriers to participation, travel, accommodation and other reasonable costs for in-person events will be covered by JPMorganChase if required.

The programme begins with two days at JPMorganChase’s Glasgow Technology Centre on 10th and 11th September 2025 with full-day in-person sessions in London every two weeks.  Virtual sessions every other week for between 3-4 hours per week. The trip to Slush 2025 takes place between 18th November and 21st November 2025.

Who should apply?

We are seeking applications from businesses that:

  • Apply technology to create scalable solutions within financial services.
  • Have a live product demonstrating market traction, with annual revenues not exceeding £1 million.
  • Show a commitment to making a positive impact on individuals and/or businesses in the UK.
  • Are dedicated to active participation in the programme.

We are actively encouraging applications from founders or business leaders who have encountered obstacles to growing their business, including a lack of proximity to funding and networks, and/or those addressing the needs of underserved consumers, businesses or communities.

Applications are assessed on a rolling basis, and early submission is encouraged. The deadline for applications is 27 June 2025.

Apply here.

Mind the Gap: Bridging the UK’s pension divide with digital solutions

The UK pensions landscape is at a crossroads: with 38% of the working-age population under-saving for retirement and 52% of people accessing their pensions without adequate advice, the risk of poor financial outcomes are at an all-time high. Yet, the market is set for huge growth, with defined contribution pension assets projected to explode to £800 billion by 2030. 

This is not a new problem, and despite well-intentioned efforts like auto-enrollment from policy-makers and new digital products from providers, there is still a fundamental disconnect; customers lack engagement and understanding in later life planning and financial outcomes.

Solving this challenge presents a significant growth opportunity for providers, but to do so needs a design-led approach focused on deeply understanding your customers through three core elements: Empathy, Engagement and Empowerment. Technology – and particularly AI – of course plays a crucial role, but doesn’t replace the need for empowered advisers. The future will be hybrid: a combination of traditional digital interfaces, agentic AI, and human touchpoints to create hyper-personalised experiences based on an individual’s aspirations, circumstances and preferences. 

This whitepaper, drawing on digital partner CreateFuture‘s decades-long experience in the Wealth & Pensions sector, provides a compelling vision for the future of pensions engagement, outlining how a hybrid approach leveraging digital innovation, AI, and empowered advisors can create truly customer-centric experiences and unlock a more secure future for savers.

Scotland’s 2025-26 Programme for Government: A Springboard for Fintech Growth and Innovation

The Scottish Government’s 2025-26 Programme for Government outlines an ambitious agenda to drive economic resilience, reduce inequality, and lead in green and digital innovation.

For Scotland’s thriving fintech community, the programme delivers encouraging signals, particularly in the areas of global competitiveness, startup support, inward investment, and the wider innovation ecosystem.

Global Reach, Local Impact

Scotland’s new Six Point Export Plan will be of particular interest to fintech firms looking to scale internationally. It promises targeted support for export-ready companies, an expanded Scottish Development International footprint in Europe and the US, and a US Export Plan to identify optimal markets for Scottish strengths. It also includes efforts to bring global buyers to Scotland and increase trade missions in order to provide fintech scale-ups the kind of exposure essential for global growth.

Fintech-Specific Opportunities

The programme reinforces the Government’s commitment to strengthening Scotland’s position as the UK’s top investment destination outside London. Specifically, it outlines plans to:

  • Enhance SDI support in key global markets, including Silicon Valley and other tech hubs, to attract high-growth companies to Scotland.
  • Leverage partnerships with financial centres, including the City of London Corporation, to grow the fintech and financial services ecosystem.
  • Improve private sector co-investment, notably from pension funds and institutional investors, to unlock funding for scaling ventures.
  • Launch InvestScotland, a single-entry digital platform for showcasing national investment opportunities.

The main focus is to attract the international capital and expertise so important for fintech companies ready to scale from Scotland to the world.

Backing Startups and Inclusive Innovation

The programme puts clear emphasis on developing a more inclusive and dynamic startup environment. Highlights include:

  • The First Minister’s Start-up Challenge, offering tailored support for underrepresented entrepreneurs.
  • Up to £6 million to implement the Pathways report, supporting more women to start and scale businesses.
  • Creation of a University Proof of Concept Fund and a Technology Council to commercialise academic research and shape future innovation policy.
  • Continued investment in Scottish Edge, the Ecosystem Fund, and initiatives like AI Scotland, providing meaningful resources to young tech firms.

This support looks to increase the pipeline of innovation-led companies, many of which operate within fintech or adjacent sectors.

Skills and Talent Pipeline

Access to talent remains a key concern for fintech firms. The programme commits to:

  • Maintaining free university tuition and expanding STEM education.
  • Investing in apprenticeship and upskilling programmes, including in AI, data, and digital finance.
  • Enhancing international education links to attract global students and research talent to Scotland.

These steps will help ensure fintech companies have access to the right skills at the right time, particularly as they grow and evolve.

You can read the full programme here.

Showcasing Scotland’s Fintech Leadership across the UK.

As UK FinTech Week 2025 approaches, we are delighted to share that we’ll be playing an active role throughout the week, engaging in critical conversations, championing innovation, and showcasing the strength and ambition of Scotland’s fintech community on a global stage.

Here’s a look at where you can find us and what we’ll be up to. We’d love for you to join us.

Monday 28 April

We kick off the week in London, where our CEO Nicola Anderson will speak at the Global FinTech Forum. This event, led by the Department for Business & Trade, HM Treasury, and the Office for Investment, brings together a very global audience with over 30 nations represented. Nicola will contribute to a panel exploring vital growth drivers for UK fintech.
You can still register here.

Tuesday 29 April

Nicola will take the stage again at IFGS, the flagship event of the week, to discuss regional fintech growth. The session will build on the recent Innovate UK report, to which FinTech Scotland contributed. With over 1,500 attendees and participants from more than 70 countries, this is a fantastic opportunity to showcase the Scottish fintech cluster on the world stage.

In the evening, Nicola will join industry leaders at the exclusive NVIDIA: AI in FSI Meet-Up. This gathering will explore how AI is transforming financial services, from boosting operational efficiency to enhancing customer experience and managing risk.

Wednesday 30 April

We’ll be at the FCA RegTech Forum, an event designed to foster innovation and growth in UK regulatory technology. Delivered in partnership with Innovate Finance and the City of London Corporation, this forum will explore the role of RegTech in supporting the evolving needs of financial services. If you would like to attend you can register your interest here.

On the same day we’ll also be cheering on the next generation of fintech talent at Pitch360, where ten innovative companies will go head-to-head with just three minutes to pitch their bold ideas.

The day will conclude with a celebration of fintech innovation at an event organised in partnership with our strategic partner BT. This invitation-only reception at BT Tower will focus on a critical enabler of fintech innovation. We’ll explore how technology and connectivity are essential to the future of AI, with keynote insights from BT introducing their Global Fabric.

Thursday 1 May

We return to Scotland for the Financial Services Technology Summit hosted by Digit. Nicola will join a panel of industry leaders, discussing the intersection of technology and operational resilience in financial services. This session will cover practical strategies, regulatory shifts, and real-world case studies.
She will be joined by Derek Shanks, Head of Digital Technology, Lloyds Banking Group, Yvonne Dunn, Partner at Pinsent Masons, Rob Mossop, Chief Data Officer at Sword and Stephen Johnston, Distinguished Engineer at Barclays Group.

To round off the week, we’ll be hosting a Scottish fintech gathering, an evening of networking, community, and collaboration. We’re inviting the entire Scottish fintech community to come together, connect and celebrate past and future successes.

Why Community Financial Institutions Need an AI Operating System

The financial services landscape is at an inflection point. Recent industry data shows AI adoption by UK financial institutions doubled from 32% to 63% between 2023 and 2024, with over 80% of banking executives now viewing AI as a business opportunity. Yet this transformation is uneven – while large banks invest heavily in AI, community financial institutions often lack the infrastructure to compete.

Working with over 300 credit union staff across Scotland, we’ve observed a critical reality: small teams are spending much of their time manually maintaining, distributing, and correcting data – constraining their bandwidth for value-added activities. This isn’t just an efficiency problem; it’s preventing vital community institutions from achieving the economies of scale needed to compete with larger banks.

The U.S. market provides compelling evidence for how AI can level this playing field. Nearly 30% of U.S. community banks and credit unions plan to implement generative AI tools in 2025, with early adopters already seeing significant gains in operational efficiency and member service. Through innovators like Eltropy, even the smallest credit unions are using AI to handle routine queries, process documents, and personalise communications.

At Niovant, we’re bringing this transformation to the UK market. Our thesis is simple: semi-autonomous AI agents will fundamentally elevate productivity by eliminating routine work at scale, giving organisations back time for higher-value tasks. Our platform ingests raw data from core systems, structures it for AI agents, then triggers the actions and workflows that previously consumed staff time.

The Building Societies Association noted in 2024 that mutual lenders are actively exploring how AI can boost staff productivity and customer satisfaction “at scale – but reduce cost” in line with their values. We’re making this possible by building an operating system that helps financial institutions orchestrate AI automations while adapting to shifting goals, regulations, and member needs.

The future of financial services won’t be built on static software, but on adaptive AI systems that give organisations back their most precious resource: time. We’re building that future, starting with the institutions that need it most.

Please reach out to me at lewis@niovant.com to discuss collaboration.