Open Finance and Carbon Neutral Banking
Recent industry insights show that banks still face significant constraints in measuring indirect Green House Gas (GHG) emissions owing to data limitations and a lack of harmonised methodologies.
At the same time, banks and other financial institutions hold large volumes of consumer data that can be leveraged to estimate GHG emissions albeit financial transaction data are privately owned with restricted access. This paper discusses how an open finance framework can be used to aggregate consumer transaction data across multiple financial products to compute carbon footprints.
It highlights a step-by-step approach to carbon footprint estimation and discusses the consideration for using microdata for emission computation.
Open Finance – What’s next?
Season 4, episode 10
Listen to the full episode here.
Open Finance is set to unlock a new level of transparency, accessibility, and control for consumers, businesses, and financial institutions. But what does this mean for the future of the financial ecosystem, and how will key players navigate the opportunities and challenges that come with it? We discuss what Open Finance really means, the progress made so far, and what the future holds for consumers, fintechs, and traditional banks alike.
Guests:
Ezechi Britton – CEO at the Centre for Finance, Innovation and Technology (CFIT)
Jen Lothian – Founder at MyArk
Space-Comm Expo Scotland 2024: How Can Fintech and SpaceTech Come Together?
The inaugural Space-Comm Expo Scotland will be the largest space industry event ever held in Scotland and will take place at the SEC Glasgow from September 11-12, 2024. Hosted by Will Whitehorn, the former President of Virgin Galactic and current Chancellor of Edinburgh Napier University, this event promises a fantastic lineup of keynote speakers from various sectors, including government, aerospace, defence, and academia. Among the speakers, Nicola Anderson, CEO of FinTech Scotland, will offer her reflection on the growing intersection between space technology and financial technology.
A Showcase of Scotland’s Space Industry Prowess
Space-Comm Expo Scotland is set to shine a spotlight on the nation’s dynamic space sector, which has become one of the fastest-growing in Europe. With over 150 space companies and 80 aerospace companies, Scotland supports nearly one-fifth of all UK space sector jobs and builds more small satellites than anywhere else in the world, second only to California. The event will feature more than 100 exhibitors and is expected to attract over 3,000 attendees, including representatives from government, industry clusters, academia, and commercial enterprises.
Keynote Speakers and Industry Leaders
The Expo’s impressive roster of speakers includes notable figures such as Dr. Paul Bate, CEO of the UK Space Agency; David Parker, Space Exploration Director at the European Space Agency; and Professor Malcolm Macdonald, Chair of Applied Space Technology at the University of Strathclyde. The opening address will be delivered by the Lord Provost of Glasgow City Council, Jacqueline McLaren.
Nicola Anderson’s presence is particularly noteworthy for the fintech cluster. As CEO of FinTech Scotland, Anderson has been driving innovation and collaboration within Scotland’s financial technology sector. Her participation shows the critical role fintech plays in supporting and enhancing space technology ventures. A previous initiative between FinTech Scotland and Space Scotland highlighted how data from satellites can be used to enhance propositions in the financial sector such as supply chain management, measuring carbon impact of various assets or better handling of insurance claim management to name a few.
Exploring the New Commercial Space Age
The speaker programme at Space-Comm Expo Scotland will cover a wide range of topics, including spaceports, launch capabilities, satellite manufacturing, downstream data, AI, cyber security, space law, investment, skills development, and space sustainability. These discussions come at a pivotal time in the commercial space age, highlighting both the opportunities and challenges the industry faces.
Anticipated Outcomes and Collaborations
Kevin Scullion, International Trade Specialist at Scottish Enterprise, expressed high hopes for the event, anticipating further collaboration between Scottish, UK, and international partners. The Expo is expected to foster discussions on trade opportunities and strengthen ties within the global space community.
Supported by key organisations such as the UK Space Agency, Scottish Enterprise, and FinTech Scotland, the Space-Comm Expo Scotland will be an unmissable event for anyone involved or interested in the space industry. With a world-class programme of content, product demonstrations, panel sessions, and 1-2-1 networking opportunities, it offers a comprehensive platform for knowledge exchange and business development.
Space-Comm Expo Scotland will be held from September 11-12, 2024, at the SEC in Glasgow. Registration is free, and those interested in attending can sign up at space-comm-scotland.co.uk. For information on exhibiting, email spacecomm@hubexhibitions.co.uk.
EY Launches First Scottish Fintech Lab with Space Agency Partnership
EY has launched its first Scottish fintech lab in Edinburgh. The innovative space is designed to foster collaboration, experimentation, and rapid prototyping among start-up and scale-up companies in the fintech sector.
Purpose and Vision
The Edinburgh fintech lab brings together fintechs, investors, clients, regulators, and other partners, the lab will facilitate the development of real-world solutions that enhance market and customer service. The focus will be on creating innovative solutions to key financial challenges, particularly in sustainable finance.
First Cohort and Space Collaboration
The lab’s first cohort explored the intersection of space science data and finance. In partnership with FinTech Scotland, Space Scotland, and supported by the UK Space Agency (UKSA), the program aims to deepen the understanding between financial services and the space industry. A notable project by Environment Systems and Earth Blox utilised spatial data to optimise agricultural commodity production while ensuring compliance with environmental regulations.
Leadership Insights
Sue Dawe, EY Scotland’s financial services managing partner, highlighted the importance of sustainable finance and the lab’s role in fostering innovation within Scotland’s fintech sector. Nicola Anderson, CEO of FinTech Scotland, and Hina Khan, Executive Director of Space Scotland, emphasised the collaborative efforts to drive positive economic and social change.
For more information, visit EY Fintech Lab.
Bridging the Gap in Benefits Accessibility: Aperidata and Inbest’s Collaborative Effort
In the UK, a large number of households, totalling over 8 million, are missing out on an estimated £19 billion in benefits. This oversight is largely due to a lack of awareness or the misconception that they are not eligible for these benefits.
Aperidata’s Innovative Approach
Aperidata is revolutionising this scenario with its real-time Credit Reference service. This service, which blends Open Banking data and financial assessments, is designed to facilitate more informed decisions and drive financial inclusion.
The Inbest Integration
An important development in Aperidata’s offering is the integration of Scottish fintech Inbest‘s Benefits Calculator. The tool can identify customers who are not claiming benefits they are entitled to, allowing Aperidata to provide personalised support in navigating the often-complex benefits application process. This capability is a new feature in Aperidata’s Credit Console product, which enhances services in loan origination, account management, collections, and debt advice.
Enhancing Financial Well-being
Aperidata’s goal with this integration is to improve the financial well-being of its Affordable Lending and Debt Advice clients, while also ensuring compliance with the FCA Consumer Duty.
The Affordable Lending sector will benefit significantly from this integration. Often, loan applicants are unaware of the benefits they are eligible for, seeking emergency loans instead. By integrating a benefits check into the loan application process, Credit Unions and Community Development Financial Institutions (CDFIs) can use Aperidata’s insights to guide applicants towards unclaimed benefits, providing a more sustainable financial solution.
Revolutionising Debt Advice
For Debt Advice firms, integrating income maximisation is essential, especially for clients with low budgets. The Aperidata Credit Console offers a comprehensive view of additional benefits and discounts, aiding advisers in designing optimal debt solutions. This integration allows advisers to conduct in-depth analyses of varying work hours, benefit entitlements, and their impacts on budgets, simplifying the income maximisation service.
Call to Action
Aperidata invites interested parties to experience the capabilities of the Aperidata Credit Console. This demo offers insights into how it can help customers and advisers uncover an average additional income of £5,000 per year. Interested parties can reach out via the Aperidata website.
Join Aperidata at the Arrears & Collections event on Tuesday, 12th December, to discuss the benefits of integrating income maximisation features across the credit lifecycle and more.
Scotland Fintech Festival – Episode 4 – Smart Data Foundry
Season 3, episode 13
Listen to the full episode here.
During this special episode of Fintech Scotland’s Podcast we recorded live from the Fintech Summit, the opening event of Scotland Fintech Festival that took place between the 21st of September and the 12th of October 2023.
In this episode we spoke to Bryn Coulthard, Chief Product and Technology officer at Smart Data Foundry.
We discussed the role of data as an enabler for collaboration between fintech firms and established financial firms. More specifically we looked at synthetic data to innovate in a safe and efficient way.
Announcing the Launch of the Smart Data Discovery Challenge
Exciting news for all innovators, entrepreneurs, academia, and the civil society! The Department for Business & Trade, Challenge Works, the Open Data Institute (ODI), and Smart Data Foundry are announcing the launch of the Smart Data Discovery Challenge.
Smart Data’s potential impact
From the 26th of October to the 8th of December 2023, the consortium will welcome ideas from across sectors. They invite participants to share their most innovative use case ideas that drive a consumer-focused Smart Data economy.
The heart of this challenge lies in discovering the leaders in the Smart Data domain. Those with the most compelling cross-sector Smart Data use case ideas will be recognised. Their expert panel will review all submissions and choose the most innovative. If your idea is selected, you will have the opportunity to refine it further in collaboration with their expert team.
And that’s not all!
The Discovery Challenge will peak in March 2024 with an event dedicated to the rising Smart Data community. Here, the best ideas will take center stage, with participants pitching their proposals. The stakes? Financial rewards from a prize pool of up to £20,000! The most outstanding pitches can win individual prizes of up to £5,000 each.
But the journey doesn’t end with the Discovery Challenge. 2024 will witness the inauguration of the Smart Data Challenge Prize. Those participating stand a chance to gain a portion of an impressive £750,000 and gain exclusive access to a customised data sandbox. This unique platform will empower participants to prototype and test a plethora of cross-sector Smart Data use cases.
So, whether you’re an individual bursting with innovative ideas or an organisation ready to make waves in the Smart Data sphere, you are encouraged to apply.
Special Scotland Fintech Festival 2023 – Nicola Anderson, CEO at FinTech Scotland
Season 3, episode 10
Listen to the full episode here.
Scotland Fintech Festival took place between the 21st of September and the 12th of October. With over 50 events the festival was a real success this time again.
During the launch event, the Fintech Summit, we recorded special episodes in collaboration with collaboration platform Findr.
In this episode we speak with Nicola Anderson, CEO at Fintech Scotland about the festival itself as well as initiatives that are underway, delivering the recommendations of the UK Research & Innovation Roadmap.
Unlocking Financial Innovation with Digital identities and Open Finance
Open banking data is hugely valuable as it allows us to address the lack of trust that innately exists in a digital-first financial services engagement. In actuality, it is our bank accounts that best reflect us as physical people, spending money every day and creating a footprint of data. By using open banking data we can leverage the identity and data we already have with our banks, so that third parties (like lenders) can understand us just as well as our bank understands us.
James Varga, Founder of DirectID, is passionate about Open Banking and the opportunities it provides to redefine the credit and risk industry. In 2011 he founded DirectID with a mission to leverage the identity and data that users have with their bank accounts, helping them prove their identity, financial health, and credit risk in seconds.
“One of my core fundamental beliefs is this idea that we should be able to manage our own individual data,” says Varga. “In the very near future, I think we’re going to start to hit that challenge around the sharing of identities and related standards, which will push us towards a consumer-centric data sharing model, where consumers are empowered to manage their varying sources of data and share them with third parties. But we’re not quite ready for it yet.“
Over the past few years, he notes that the industry has started to view digital identities as an enabler and opportunity, largely because we need to rely on a trusted exchange of information to make decisions. In a centralised view of the consumer-centric data sharing model, identities are treated as a utility with control over identifiers as a result. However, it is extremely difficult to maintain control within this centralised system due to the sheer scale of data relationships that exist. The decentralised model, meanwhile, places the consumer at the middle. This model recognises that value is found, not from controlling the identifiers, but from within the data and services related to that data. There are examples of decentralised models that we can draw on, for example, the domain name network and mobile phone numbers. Such a decentralised model won’t come without challenges: a framework and methodology still need to be ironed out, but prior to this Varga believes that the first big industry challenge is to realise that we shouldn’t own people’s identity and give up ownership over that.
As we move into a world where consumers have an increasing amount of access and control in managing their data, we move from open banking to open finance, which can incorporate all sorts of data occurring over a person’s lifespan. Once the decentralised framework of identity sharing is agreed on, issues around security, compliance and tech standards can then also be agreed upon. “This isn’t a technical problem,” says Varga. “What we want is for people to use multiple identities, and give that control back to the individual to help them to understand who sees your data, who is accessing it, and who is sharing it. And even, ideally, here is the money that you can make from enabling or the benefit that you can get from enabling.”
The Evolution from Open Banking to Open Finance
Bryn Coulthard is the Chief Product and Technology Officer at Smart Data Foundry, coming originally from a background in banking technology and product. The goal of the Smart Data Foundry is to safely unlock the power of financial data to provide huge benefits to society and inspire innovation by delivering economic, social and environmental benefits for everyone.​
As the UK’s journey progresses from Open Banking to Open Finance, Coulthard stands by the need for the development and evolution of standards. Whilst the UK mandated that providers deliver against API standards, Europe’s PSD2 approach decreed that banks needed to provide APIs but did not prescribe what these should look like. Today, as a result, we can see the level of adoption of Open Banking in the UK is much higher as opposed to Europe, due to the EU’s large array of differing standards. Such a myriad of standards means both fintechs and aggregators have to now build and develop complicated solutions to handle these multiple APIs.
With ever-increasing complexity in the global Open Finance standards landscape, Smart Data Foundry maintains a Standards Library to help financial institutions and innovators quickly and easily assess technical standards adopted by a geography or financial system. “We look at Open Banking and Open Finance standards across the globe, and we maintain and update those standards as they evolve,” explains Coulthard.
Coulthard is firmly of the view that standards need to be enhanced to be much more prescriptive about how APIs perform in terms of performance and availability. While in the past the UK was certainly a leader in this space, we’re now starting to see other countries learning from and building upon what’s been achieved in the UK. For example, Australia is more advanced in driving wider value through their core Consumer Data Right standards, Brazil has begun to really embrace Open Finance, and some Middle Eastern countries are beginning to push some quite strong Open Banking standards. “What we’re seeing internationally is that people have gone beyond the UK’s position and are now looking at ways to build on what we did and bring things to the next level. We need to learn from that as well,” he emphasises.
Coulthard strongly believes that Open Finance provides an opportunity to help people through their journey by demystifying finance so that people will make better informed decisions. It can help people retire, build new debt management, provide SMEs with better access to finance, or gig economy workers with savings or pensions programmes. “Open Banking has been around for the past six years, and it has been a real success. I just think it took time to get going,” he says. He warns against people getting too excited, however, about Open Banking or Open Finance as they are simply a means to an end. People should actually get excited about the value that increases the type of propositions and offerings.”