Navigating 2024: Priorities from FinTech Scotland’s CEO, Nicola Anderson

As we step into the early months of 2024, I’m reflecting on the achievements and progress across the FinTech Scotland Cluster over the past six years, and am also focused on the year ahead to build on the work so far and enable more opportunities for fintech innovation. 

The FinTech Scotland Cluster is a vibrant and diverse ecosystem that’s driven by contributions from a diverse range of committed participants focused on shaping the future of financial services. It goes without saying that technology is a critical focus, but we also find that there is a purposeful intent to the commitments to support the needs of a successful economy, one that’s becoming more and more digital. 

It’s the commitment from all involved in the Cluster that has resulted in a number of significant achievements over the years, including:

1. Continued growth in fintech SMEs and fintech jobs, 
2. Greater collaboration between larger organisations and smaller fintechs,
3. Development of new innovative products, services and partnerships that all ultimately deliver good customer outcomes, and 
4. A deepening focus on fintech R&D driven by the research excellence from the universities in Scotland and by collaboration on industry priorities in the FinTech Research and Innovation Roadmap (R&I Roadmap).

So, despite the challenging economic environment, I am optimistic about our opportunities for growth and innovation. In particular, I am looking forward to deepening our approach of collaborate to innovate’, and the limitless potential this powerful combination offers. We see it working already, resulting in changes for customers, businesses, our economy and the environment, supporting future needs and the development of fintech-enabled financial services in Scotland and across the UK. 

A new year brings an opportunity to assess our priorities for the year ahead. We’re focused on propelling our fintech cluster forward, deepening connections across the UK and the world, as well as accelerating fintech SME growth. 

Innovation and Priorities in 2024:

Fintech Growth

The FinTech Scotland community of fintech SMEs continues to grow, with 227 businesses currently developing and delivering fintech products and services that meet business and citizen needs. Accelerating their success and enabling them to grow and scale requires a collective focus on investment, access to current market opportunities (which includes collaboration with financial institutions), and supporting their ambitions to export.  

We’re spurred on by January triumphs already. 

Snugg, a thriving fintech, kicked off the year by announcing success on both funding and collaboration that will help them expand and scale throughout 2024.

Broadridge Financial Solutions, a growing and global fintech, announced success in international markets working with Denmark’s Danske Bank, exporting services and continuing its global growth.

Encompass Corporation has also started the year off by continuing its global expansion and growth through acquisitions.

We will continue to focus on investment, growth and international opportunities for the fintech SMEs throughout 2024.

Impactful collaboration

Working with the big and small 

We saw growing success throughout 2023 in the fintech programmes delivered in association with Lloyds Banking Group, TSB and Phoenix Group. Within our approach of collaborate to innovate’, more partnerships emerged, and fintech enterprises benefited from hearing about priority needs directly from the market. 

There is more to come in 2024. Collaborate to innovate’, through practical innovation programmes, will enable more potential for commercial opportunities and support new ways for market adoption of new and emerging technologies. We’re commencing the year with an innovation call on using AI and emerging technologies to help simplify compliance. 

The role we see for R&D

In 2023, we launched the Financial Regulation Innovation Lab, with an agenda focused on how technology can simplify and support compliance, and help regulation develop. The Lab also creates an independent environment to enable industry collaboration on current and emerging challenges within financial services. It’s a privilege to work with all involved, including UK regulators, large financial institutions and fintechs, as well as the University of Strathclyde and the University of Glasgow.

The Lab is kicking off 2024 with a collaborative research and innovation programme focused on AI and emerging technologies, and looking at their application in ESG regulations, Consumer Duty requirements and addressing Financial Crime. You’ll hear more about the progress throughout the upcoming year, and if you’d like to learn more now please let me know. 

Financial inclusion continues as a pressing issue. The cost of living crisis has brought it into further focus and the FCA’s Financial Lives survey persists in demonstrating a need for change. Throughout 2024, we will work with Financial Inclusion for Scotland, the FCA and Scottish Financial Enterprise, and explore how technology and a heightened period of focus can help move the dial on this critical problem. 

We’ve initiated this already, working in collaboration with the FCA on a Financial Inclusion TechSprint (more details can be found here). The Sprint is focused on helping to find ways to enable those excluded from basic financial services to get access. There’s a firm belief that technology can help, and that collaboration and a willingness to find solutions is key. The Sprint will run from March until the end of May, and conclude with an event in Glasgow. I’m starting 2024 hopeful we can drive change on this difficult agenda. The invitation to get involved is open to all. 

Working on priority environmental issues

With the climate agenda critical to so many aspects of business and society, it’s no surprise that fintech enterprises are working to find solutions and services that will help – indeed, the number of Scottish fintechs focused on climate doubled in 2023. In addition, we saw accelerated learning across the cluster through our work with Space Scotland, increasing our knowledge and understanding of geospatial data. 

There is more to come through 2024 on the priority of climate finance. We’ll build on the lessons and experiences from Space Scotland, exploring application of geospatial data in insurance risks, investments, emerging regulatory requirements and ESG development. 

Inclusive Cluster leadership

We will continue to work across the UK to advance fintech innovation. The FinTech Scotland team will continue to progress collaborative opportunities across the nation, working with the Centre for Finance, Innovation and Technology (CFIT), the Fintech National Network, Innovate Finance and The City of London Corporation. We will work, learn and collaborate across the regions to accelerate the whole of the UK’s fintech potential.

We invite you to collaborate with us

We know purposeful collaboration is key – collaboration across the industry, across sectors, and amongst other fintech clusters – to help us drive and lead the future of the digital economy.

My call to action for 2024 is: Collaborate with us, and innovate. 

“The Future is Unwritten”: Stephen Ingledew OBE on the Promise of FinTech

Stephen Ingledew OBE, Chair of FinTech Scotland, likens fintech to the new punk rock scene of the 1970s. “What punk rock did was allow anyone who wanted to form a band, play an instrument, and just get up there and be part of it. It allowed more women, for example, into music than any other genre,” he explained. “Fintech is similarly challenging the traditional ways in which innovation is done.”

We took the opportunity to interview Stephen Ingledew on the occasion of him being awarded an OBE for services to the UK fintech sector and asked him the following questions:

Congratulations on your OBE! Can you briefly describe your FinTech journey and the innovations that led to this recognition?

I suppose innovation has been in my blood for just under 40 years. I decided to come into the financial world to change it for the better because, for me, innovation is a means to improve the state of affairs for people, including financial wellness. From 2018, I was asked to set up and lead Fintech Scotland as a new organisation. This allowed me to use my experience of working in big companies, like Barclays, as well as small, innovative financial companies, and bring all these experts together to develop a cluster focused on genuine innovation using new technologies – which is precisely what Fintech is. And while fintech itself is not new, what has changed in the last 10 years or so is, firstly, an acceleration of the type of technology that can be applied, and secondly, the mindset of focusing on technology as a way of bringing about better outcomes for individuals, businesses and communities. 

What makes fintech in Scotland stand out?

At FinTech Scotland, we are focused on the actual impact of the outcomes of innovation on consumers, whether that’s around issues like financial inclusion, financial crime or operational improvements for large financial firms. The FinTech Scotland cluster is about bringing people together who would not naturally do so, to drive better outcomes. Diversity is the key ingredient here. Scotland, albeit small, has a heritage of innovation, and brings together major players, bigger and smaller enterprises, and great universities. What’s crucial to our success is, rather than a narrow focus on Scotland, we see ourselves as part of the broader UK ecosystem. I happen to be one of the founders of the UK FinTech national network and believe strongly, therefore, in the value of working in collaboration with our other regional fintech groups, rather than in competition. 

What emerging trends and technologies do you think will have the most significant impact on the financial sector, both in Scotland and beyond?

What’s most exciting is the way that the cluster approach allows us to cut through the financial world into horizontal sectors of other parts of the economy. So, for example, fintech can work with SpaceTech, HealthTech and ClimateTech. I have a little saying, that fintech is far too important to leave up to the financial services industry on its own. After 40 years in the industry, I can say that we’ve not always got things right. To improve on this we need more diverse minds around the table, for instance, consumer groups impacted by the innovation. We need to listen to the users themselves, not those who think they know what’s best.

Winning an OBE is a significant achievement. How do you plan to leverage this recognition to inspire and contribute to the fintech community in Scotland? 

Hopefully it will encourage more people who wouldn’t normally have thought of fintech to actually reach out and get involved. Of course, I’m very humbled by the recognition, but it wouldn’t have happened if it wasn’t for the enablement of the three Teams’: the wonderful team at FinTech Scotland; the Scottish fintech cluster team (comprised of entrepreneurs, established industry players, academics, economic agencies like Scottish Enterprise, and investor and consumer groups); and the UK team including industry, regional fintech associations, Innovate UK, the FCA, the Centre for Finance Innovation and Technology (CFIT) and Innovate Finance amongst others. This is a great example of the whole being greater than the parts. By joining up with the UK as a whole we can recognise bigger ambitions and achieve more success for the Scottish cluster as a whole.

Can you share a memorable success story or milestone in your fintech career that you’re proud of and exemplifies your contributions to fintech?

FinTech Scotland winning the silver cluster excellent accreditation from the European Secretariat for Cluster Accreditation was an important recognition that we’re on the right track to what we are trying to achieve. Alongside that, we’re hosting the third annual UK FinTech Symposium this November, which engages the whole of the UK ecosystem, including UK government ministers, the FCA, the City of London, as well as all of the regional fintech groups, to share examples of best practice and how to build on that as a family

Personally, my motivation has come from meeting so many brilliant entrepreneurs who are inspired about improving some aspects of the financial world, whether that’s in terms of how people manage their money, through to payments mechanisms or handling new regulations. With the right mindset and the right technology, I believe things can be made better. 

Joe Strummer, lead singer of the Clash, once said, “The future is unwritten”, because it is up to each one of us to break out and write our own future. Ultimately, there will always be room for improvement and, therefore, always room for innovation – and that will always be fintech, even if it is called punk rock.

Scotland FinTech Festival Wrap-Up: Unlocking answers through comprehensive understanding

Following the conclusion of this year’s successful Scotland Fintech Festival, we spoke to Nicola Anderson, CEO of FinTech Scotland, to find out what her key takeaways of the festival were, and how she sees it demonstrating the importance of the FinTech Research and Innovation Roadmap’ in guiding the industry’s priorities.

Nicola Anderson, CEO of FinTech Scotland, is of the firm view that fintech is supremely poised to solve some of the most pressing challenges we have in society today, from driving change on the climate agenda, to embracing the opportunity that fintech can provide for women and financial inclusion in general. “The breadth and quality of contributions across the full range of festival events has been amazing,” Anderson comments. “The purpose of the Scotland Fintech Festival has always been about definitively showing the vibrancy, connection, collaboration, and the inclusion that we see fintech presenting as an opportunity for the economy in Scotland and across the UK – and I think the festival has demonstrated that.”

Anderson is encouraged that the festival has promoted the interests of fintechs based in Scotland by helping reignite relationships and networks, allowing participants to hear different perspectives and views. “If you look at some of the speakers and across the events, they are from both UK-wide and global institutions. This shows how connected the Scottish fintech cluster continues to be across the world, and how interested people are in coming to hear what we have to say,” she points out. The festival aims to shine a light on fintech innovation and the opportunity that fintech presents for Scotland’s economy. This sentiment was further strengthened by the launch of a new £150 million Investment Fund for Scotland by the British Business Bank to help unlock additional funding to help smaller businesses to prosper and thrive. 

“We’ve experienced purposeful action plans coming from the meetings and discussions across the Fintech Festival,” says Anderson. She provides a couple of examples, including the Scottish government’s drive behind an action plan that will enable fintech for exports. In addition, the focus of discussions on the impact of data and AI on the future of finance and climate. This demonstrates that the FinTech Research and Innovation Roadmap’ is the right vehicle to advance innovation in the financial services sector. It calls on the importance of data, AI and technologies to drive change and innovation.

Anderson also feels that the UK is starting to realise the benefits from some of the recommendations outlined in the Kalifa Review. This is shown through the relationships FinTech Scotland has created with the Centre for Finance, Innovation and Technology (CFIT) around work on finance data, as well as the team behind the UK FinTech Growth Fund involved and participating at the Festival showcasing investment opportunities. “It emphasises how important it is to connect the regions as per the Kalifa Review,” she notes.

What should the Scottish FinTech sector focus on next? “We have an opportunity to drive growth by focusing on those fintechs that are starting to scale,” she underlines. “We also need to focus on continuing to build relationships across the financial services ecosystem and cluster towards an inclusive environment that allows participation and collaboration between big and small entities, as well as connecting internal experts and inviting international perspectives to help us develop and grow.” In fact, there was great international representation across the festival involving delegations from China, as well as sessions focusing on the markets in the US.

“This year’s festival was a great success, and it underlines why I continue to be inspired to work at FinTech Scotland,” she concluded. “It’s about business growth, problem solving, collaboration, and innovation with purposeful intent. And most importantly, it’s about driving responsible change and outcomes that will serve society, and the future economy.”

Growing the fintech sector in the UK through collaboration

By Simon Pickering, Head of Insurance and Pensions, Finance Isle of Man.

Look to any league table on FinTech and it will tell you that London is firmly ranked in the top 3 globally, alongside North American competitors of San Francisco and New York. What this won’t reveal however, is that the British Isles has a burgeoning FinTech sector from Edinburgh to Douglas, the Capital of the Isle of Man.

Last year, Finance Isle of Man, the Government agency for the financial services industry on the Island, was delighted to sign its first partnership agreement with FinTech Scotland. This collaboration is a source of strength for the Isles and intended to promote and develop FinTech and InsurTech capabilities across the Irish sea, as well as boost economic and business co-operation and investment.

The partnership has already seen our two organisations working closely together to stimulate education, recruitment and employment opportunities, as well as provide businesses with opportunities to attend events and seminars, trade missions, conferences and Expos, including the globally renowned Scotland FinTech Festival.

We were delighted to welcome Stephen Ingledew, the Chair of FinTech Scotland to the Isle of Man this June to see first-hand how we are attracting global innovators at the Island’s first FinTech Innovation Challenge Demo Day event. This program, launched at the end of 2022 invited businesses from around the world to showcase their solutions to core challenges identified across the Isle of Man business community. 14 finalists, from Singapore to Switzerland, India to the US, were chosen to work closely with the Isle of Man Government and local financial institutions to refine their solutions. These are addressing a range of emerging issues from blockchain and cryptography protections, to AI-based business forecasting.

This is just one example of how we are establishing expertise in digital finance, and this builds on the success of the Island’s first InsurTech Acceleration Program, which last year supported pioneering InsurTech scale-ups to pitch their innovations to the business community. The program, which culminated in a sold-out pitching event in Douglas, marked a major milestone for plans to establish an InsurTech hub on the Island.

The potential for the family of British Isles, from Scotland to the Isle of Man, to collaborate and drive leadership in digital finance is significant and the past year has only seen our two jurisdictions grow in strength together.

I look forward to building on and growing this partnership over the coming months, not least returning to the Fintech Festival in Edinburgh this Autumn where I hope to have the chance to meet and reconnect with many of you.

London may sit highly in the global rankings for digital finance ”“ but this success story is undoubtedly also one of the British Isles.

Addressing stress in the tech industry

As we approach the summer season and holidays, it’s a good time to reflect on managing the work like balance.

Burnout is a significant concern in the tech industry, given its fast-paced and demanding nature; the constant pressure to meet deadlines and deliver results,  to stay updated with the latest trends, acquire new skills, and outperform peers.  Tight project timelines, high expectations, and a culture that values productivity all can lead to chronic stress and anxiety. Fear of falling behind or losing job security further exacerbates stress levels.

Post covid, working patterns have changed, more of us are continuing to work more at home, blurring the work-home, work-life distinction. Whilst this way of working has benefit from increased flexibility, the lack of boundaries can lead to increased stress, with remote work arrangements, global collaborations, and the expectation of always being accessible, adding to the difficulties in finding the time to disconnect and recharge.

We need to reconsider the work-life balance. Work ”“ life balance sounds like it is either/ or ”“ we work or we have a life ”“ we have no life at work.  We are not one self at work and another self at home, we need a holistic approach, one integrated self at home and work.  Work needs to be more life friendly, so feel comfortable taking breaks, recognise that we work better when we are relaxed and refreshed.  Keeping continual pressure to perform will exhaust us.

The tech industry can be a double whammy with long hours of intense workloads leaving little time for relaxation and self-care and the sedentary nature of tech roles, with prolonged periods of sitting, limited physical activity, and poor ergonomic practices makes it harder to look after our physical health contributing to health issues such as musculoskeletal problems, obesity, and cardiovascular conditions.

So what can you do about it?  Take advantage of flexible work arrangements, any wellness programmes or stress management resources. Make time for you.  Recognise when you need a break and make and take time.  Talk to colleagues about ways to better organise workloads, communication strategies to maximise your time. Pay particular attention to your home life, research shows that burnout is much more likely to occur if work and home are stressful. If this is the case ”“ do something about it now. Be proactive. Reach out to others to help you, it does not have to be a deep emotional heart to heart, just connecting with someone at work or socially, having a chat, doing something you like, can be restorative. Get outside, do something physical helps you see things differently and find other ways of doing things.

At the heart of our wellness is the ability to have autonomy, that is agency over ourselves, be in charge of ourselves, relatedness, that is connecting with others, and competency, that is recognising our skills.  These all contribute to our purpose and meaning.  This doesn’t have to be a huge life mission but can be a sense of what’s important to us today.  Small acts of kindness, a smile, a compliment, all help build our connectedness to others and make us feel good too.  And don’t forget to be kind to yourself as well. Lastly pay attention to your sleep, good sleep protects mental health ”“ but that’s another blog!

Dr Sheila Ross, health psychologist, co-founder Feeling good app ”“ proven audio programmes derived from sports training for recovering mental fitness and resilience. contact sheila@positiverewards.co.uk for more information about how your organisation could benefit from free app access. www.feelinggood.app

Photo by Oladimeji Ajegbile: https://www.pexels.com/photo/man-working-using-a-laptop-2696299/

High confidence in Glasgow’s regional tech sector

Startups and scaleups in the Glasgow City Region are experiencing remarkable growth in venture capital investments, surpassing many of Europe’s prominent and emerging ecosystems.

The Glasgow City Region Tech Ecosystem currently holds an enterprise value of £3.4 billion, marking an impressive 89% increase since 2018.

This positive economic performance has attracted a wave of enthusiastic investors and entrepreneurs. The encouraging news stems from a report published by Dealroom.co on behalf of Glasgow City Council’s Digital Economy team, released on Wednesday, May 24, 2023.

Leading the charge in this emerging ecosystem are regional clusters focusing on healthtech, precision medicine, net zero/climate technologies, space, fintech, advanced manufacturing, and the digital and creative economy.

Councillor Susan Aitken, Leader of Glasgow City Council, stated,

“Glasgow’s reputation for innovation, invention, and ambition continues to shape the city, and this report by Dealroom demonstrates that we are attracting new businesses and entrepreneurs throughout the region. This confidence in our city as a business hub is generating numerous specialised, high-value jobs across Glasgow.”

Dealroom.co, a global data platform, diligently tracks the performance of regional tech businesses, ranging from startups to high-growth companies and their associated investments.

Glasgow City Council announced its collaboration with Dealroom six months ago during the 24th State of the City Conference. At the conference, they unveiled the Glasgow City Region Tech Ecosystem Platform, the UK’s first standalone regional Dealroom platform designed to support local government, academia, and other public-private agencies.

This platform highlights the value of in-depth analysis of startups, scaleups, and innovation assets headquartered, founded, or significantly present in Glasgow. It provides reliable data crucial for entrepreneurs, potential investors, and facilitators operating in or considering entry into the Glasgow marketplace.

Additionally, the platform offers all startups and scaleups a valuable and free, open-source business platform and profile. Meanwhile, the data they contribute aids in shaping the overall growth landscape of Glasgow’s tech ecosystem.

Key findings from the recently published inaugural annual report include:

• Startups in the Glasgow metropolitan area continue to attract increasing levels of investment, showcasing an 8% growth over the past 12 months. This growth stands in contrast to many leading and emerging ecosystems across Europe.
• Startups in the Health, Energy, Real Estate, Fintech, and Semiconductors industries have secured nearly two-thirds of the total investment rounds in Glasgow over the past five years. Notable companies benefiting from these investments include EnteroBiotix, HVS, arbnco, AlbaCo, and M Squared Lasers.
• The first quarter of 2023 marked Glasgow City Region’s third-highest venture capital investment period on record. Noteworthy investments since the beginning of the year include companies such as Phlo Technologies, Causeway Therapeutics, DxCover, and IbisVision.
• Research conducted in city regional universities has led to the creation of over 100 spinout companies. Solasta Bio, Krucial, and Novosound are among the regional companies contributing to this achievement.
• This growth has generated more than 1,000 jobs and has inspired a new wave of entrepreneurial graduates to pursue careers in startups.

Anne McLister, Head of Digital Economy, commented,

“As Scotland’s largest city, Glasgow offers tremendous business appeal, boasting abundant talent and collaborative networks within our thriving tech and creative communities. Our emerging tech ecosystem benefits from the resources provided by renowned higher and further education institutions, including a highly educated pool of individuals with strong research and innovation capabilities.”

Glasgow’s three distinct university-anchored Innovation Districts underscore the region’s unparalleled allure as an attractive, high-quality, and cost-effective living environment for entrepreneurs and startups.