Fintech Aiming to Help Businesses Access Cash Faster
A new Fintech, Saltare, has just launched with the ambition to help businesses improve cashflow, strengthen supply chain relationships and give more certainty over payments.
Saltare is headquartered in Bristol and employs people around the UK including Scotland. It was created because 82% of businesses fail through difficulties of accessing cash (there is currently a whopping £200bn tied up in unpaid invoices). Saltare is about incentivising buyers to pay early, and in giving them the tools and reasons for doing so.
The solution comprises mobile-led technology to allow buyers to manage their entire supply chain in a way that works for them and their key suppliers. Saltare will address the needs of some of the more challenging sectors and industries, where extended supply chain are the norm (public sector and local authority bodies through to retail and construction).
Chief Executive Anthony Persse says:
“By shifting the debate away from the negative commentary around late payment’ and moving it towards a more positive conversation about early payment’, we will do much more than simply improve payment performance. We will help create more jobs, deliver greater levels of investment and generate deeper social value with long-term sustainability at a time when the country needs it most.”
“Our mission is to develop a series of tools that bring the certainty of payment, and the certainty of cashflow, that support both ends of the supply chain. Bigger than this, our mission is to change the mind-set of businesses once and for all, to embrace a new approach that is simple to make, and yet will have positive consequences for future generations”
Transforming the Everyday Life of People and Business Through Pioneering FinTech Innovation in Banking
Fintech Scotland announces new strategic partnership with NCR Corporation
FinTech Scotland, the cluster management body, has announced a new strategic partnership with NCR Corporation, a leading enterprise technology provider to further advance innovation for financial institutions.
The partnership builds on NCR’s strong innovation track record as a software and services provider with a long-established heritage of applying new technology developed through its Dundee Discovery Centre.
The announcement follows the recent release of FinTech Scotland’s ground-breaking Research and Innovation (R&I) Roadmap which, developed in conjunction with key players in the financial industry, includes a key focus on the future of payments and transactions and financial regulation.
Spanning more than 130 years, NCR has a rich history of delivering innovative solutions for consumers and businesses. With expertise in payments, transactions, digital banking and strategic advisory services, NCR will join FinTech Scotland and its other thirty strategic partners, including fourteen of the largest financial services firms, to drive forward a customer- and digital-led financial innovation transforming how people, communities and businesses engage with money and finance.
FinTech Scotland, the cluster management body for strategic partnerships within the country, will work closely with NCR, a major employer in Dundee, and its 600-strong financial experts in the region to develop innovation opportunities with fintech firms and financial institutions, plus the wider cluster stakeholders such as universities and innovation centres.
Nicola Anderson, Chief Executive, FinTech Scotland, said,
“We are hugely excited to about the strategic partnership with NCR and their dynamics and pioneering approach to developing technology will further accelerate innovation with fintech SMEs and large financial firms in the cluster. Our industry-driven, action-orientated R&I Roadmap will provide the ideal framework to advance new financial services innovations with NCR and we look forward to the collaboration with the NCR team in Dundee as well as the USA and across the globe”.
Colin Payne, corporate vice president, NCR Professional Services said
“In my experience the value of regional fintech powerhouses is undeniable, bringing raw talent and passion into the space and guiding the development of next-generation financial businesses. In Scotland, this is particularly true given the rich engineering heritage, innovative mindset and history of outstanding customer-focused financial services ”“ this unique combination brings us a new generation of powerful fintechs. We are delighted to partner with Fintech Scotland to support the scaling of these amazing new solutions.“
Discover Zing, the fintech reinventing insurance
Zing is a fast-scaling, advanced insurtech backed by leading global insurers. At our core is what matters most to our customers and partners by offering embedded insurance cover at the e-commerce checkout of leading retail brands.
Whilst the majority of consumer insurance cover is purchased online, the online insurance market is confusing, dominated by generic products, confusing applications, mystifying policy documents and an overwhelming reliance on margin eroding price comparison.
We put relevant insurance cover at the e-commerce checkout of the brands that our customers already know, use and trust. Our cover is embedded alongside or prior to finance or BNPL (Buy Now Pay Later) providers which not only increases buyer commitment but the frequency and value of the purchase. Our intuitive modular product design means our customers receive insurance that truly resonates with their purchase or hire. Our simple API enables customers to get peace of mind insurance cover with as little as one click’ at the checkout without ever leaving or disrupting the e-commerce checkout flow. Our customer portal empowers our customers to manage, grow and customise their cover and most importantly, make claims all in one place.
There’s additional revenue for our partners as well, as a subscription-based platform, Zing also provides our partner retailers with year-on-year cumulative revenue for as long as our partners customer remains a customer of Zing’s.
Zing is looking to partner with consumer facing retailers that want better customer outcomes from their e-commerce platforms, insurance brokers that have commercial customers but want a value add to further enrich the relationship and create new revenue sources, e-commerce agencies / advisors and e-commerce payment services providers.
We are delighted to be working with FinTech Scotland and please do get in touch should you wish to find out more.
Introducing mnAI to the fintech ecosystem
mnAI is a multi-award winning data, insight and analytics platform that provides information on all unlisted companies in the UK. It is the UK’s largest and most comprehensive source of data – a single, unified source that holds 10bn+ data points on 8m+ UK companies. We apply a wide variety of machine learning algorithms and filters so users can access targeted, customised information and insight across industries, sectors, and geographies far more rapidly than is currently possible.
The platform is used by, amongst others, investors, advisors, corporates, professional services, government and educational establishments to improve their insight and efficiency, to enhance and support their operations across several departments, while at the same time reducing their costs.
Ricky, our Managing director in Scotland, tasked with growing the business in Scotland and beyond said:
“With Edinburgh being named as one of the UK’s leading tech cities we are delighted to have become part of the Fintech Scotland ecosystem. Stephen Ingledew and Nicola Anderson have done and continue to do a remarkable job and the whole team at mnAI look forward to developing a very long-standing and close relationship with the Fintech teams across the UK. The power of data is now more valuable than ever and we believe the mnAI platform will only add value to strategic partners across the UK.”
To find out more about our platform and technology please visit us at mnai.tech
Scottish fintech helping poorest households access thousands in unclaimed benefits
Not for profit community lender Scotcash launches new online Benefit Checker, finds nearly three-quarters of users missing over £4000 per year they could be claiming
A new, automatic online service will help some of the UK’s 8 million financially vulnerable households which currently miss out on £16 billion in benefits they are due.
Not-for-profit lender Scotcash said its new benefits calculator, provided by Inbest, an award-winning fintech, will automatically compare the actual benefits people receive with the benefits they are entitled to, based on their specific circumstances and financial situation.
The calculator is integrated within Scotcash’s online affordable loan application process and notifies customers about any unclaimed benefits before guiding their applications. It will help people in households who are unaware of their entitlement, wrongly assume they are not eligible or think an application is too complicated.
The feature is already helping loan applicants to top-up their salaries with their benefits entitlement, reduce their bills, apply for smaller amounts of credit, repay their loans more comfortably, and build savings in the future.
Sharon MacPherson, CEO of Scotcash, said:
“Financial insecurity is expected to be a bigger reality for more people as a result of the end of furlough, increased utility bills and higher national insurance contributions so it’s more important than ever people claim everything they are entitled to. We are delighted to enhance our existing customer support with this much needed new service.”
Manu Peleteiro, co-founder of Inbest, said:
“We believe that partnering with companies that offer complementary services is the most efficient way to reach people that are missing out on their benefits. We are super proud of the impact that this partnership is making on Scotcash customers, so far we’ve identified that 70% of loan applicants were missing on average £465 each month on benefits.”
The impact is even bigger for households with children, who can claim additional benefits of £565 per month they currently don’t.
“Affordable credit can be a lifeline for people who have difficulty accessing mainstream sources, such as banks and building societies,” added MacPherson, “but Scotcash has always been more than just an ethical lender and determined to help customers build their financial well-being. If they don’t access the benefits they are due, people can end up in worse financial situations. We’re thrilled to see the immediate impact this calculator is having on our customers’ lives.”
The power of FinTech responding to the world’s worst humanitarian crises
Photo: Nur Jahan* and her daughter Ismat* (names changed to protect identity) live in the world’s largest refugee camp near Cox’s Bazar, Bangladesh. DEC funds have helped provide them and thousands of other Rohingya refugees with handwashing facilities and advice on how to stay safe from Covid-19. – Credit: Fabeha Monir/Oxfam
Article written by Huw Owen, External Relations Manager, Scotland for DEC – Disasters Emergency Committee
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When large-scale disasters hit countries without the capacity to respond, the DEC brings together 14 leading UK aid charities to raise funds quickly and efficiently.
In these times of crisis, people in life-and-death situations need our help and our mission is to save, protect and rebuild lives through effective humanitarian response.
Pooling our resources to work as one, we are pivotal in co-ordinating the UK public’s response to overseas disasters. In collaboration with our Rapid Response Network of national media and corporate partners, we raise the alarm to the UK public and set up easy ways to donate.
And we have immediate impact, getting aid to people who need it, fast.
Our current Coronavirus Appeal is funding work in eight countries – Afghanistan, Bangladesh, DR Congo, India, Somalia, South Sudan, Syria and Yemen. This includes six of the world’s most fragile states, the Rohingya refugee camps in Bangladesh, and India, which was hit by the worst outbreak of Covid-19 yet seen during the pandemic in April and May 2021.
Millions of people living in fragile states have little access to medical care or clean water, making them much more vulnerable to new, more contagious variants of coronavirus.
But in many countries the economic effects of the pandemic could be even more deadly than the virus itself as millions of people are pushed towards famine due to falling incomes and rising food prices. Hunger can be particularly devastating for children, leading to malnutrition which in the worst cases can be fatal.
The DEC is focused on
- supporting fragile health systems with PPE, equipment, and isolation and medical care facilities
- helping to give vulnerable families the means to protect themselves with water, soap, handwashing stations and information
- ensuring that the Covid-19 crisis doesn’t mean people go hungry and children become malnourished.
The UK banking and FinTech sector has had a big impact on the success of this appeal. There are several actions that corporate partners can take in support of DEC Appeals, but probably the most powerful by far is a combination of what we call “Amplify” – getting the word out to customers, clients and the public at large; and “Experience” – creating innovative new donation channels for the appeal. This combination of Amplify X Experience has delivered incredible results by raising millions of pounds in vital humanitarian aid for the people who need it most. Here are some examples of successful partnerships in this space:
The NatWest Group introduced a notification within its banking apps, prompting users to donate to the DEC Coronavirus Appeal, with incredible results.
The notification was live between October 2020 and January 2021 in the NatWest and Royal Bank apps, and raised an incredible £356,000 for the appeal. It went live again when the DEC extended its appeal to include India as a devastating surge of coronavirus overwhelmed the country, raising an additional £225,421 for India over three months.
Revolut also featured the DEC Appeal in their app ”“ Revolut has a dedicated Donations section, where over 30,000 Revolut customers have donated £262,000 to the DEC Coronavirus Appeal for India.
The DEC’s collaboration with PayPal Giving Fund has helped raise millions of pounds to benefit our appeals: in the 2019 DEC Cyclone Idai Appeal an incredible £1,320,000 was raised for emergency response, as strong winds and widespread flooding ripped apart roads, bridges, houses, schools, and health facilities and submerged vast swathes of agricultural land. Across Mozambique, Malawi and Zimbabwe, at least 900 people were killed and around three million were left in desperate need of humanitarian assistance.
PayPal amplify DEC appeals by sending email communication out to all opted-in PayPal customers at appeal launch. PayPal helps improve supporter experience by creating dedicated fundraising pages and using their “Give at Checkout” initiative. With this simple yet incredibly effective action, almost £1,000,000 was raised to benefit the DEC Coronavirus Appeal.
You can help us to build on these partnerships, harnessing the significant outpouring of concern and generosity that the UK public shows in the face of the world’s worst humanitarian crises.
Get in touch with the team at partnerships@dec.org.uk, we’d love to hear from you and explore how your FinTech can be a part of the UK’s life-saving response to international disasters.
Discovering the Digital Technology Education Charter
The uptake of Computing Science in schools has fallen dramatically over the last decade, along with the rapid decline of Computing Science teachers numbers in Scotland and there are now too many schools in Scotland that do not offer the subject
In contrast, Scotland has an exciting digital tech sector with excellent tech courses at college and university, and an enormous amount of goodwill to help inspire the next generation into the world of tech.
To give you some context behind the motivation of the charter. In Scotland Computing Science at schools is a subject that has experienced a dramatic decline and currently had a very low uptake of pupils picking the subject, a widening gender gap and a decline in Computing Science teacher numbers. There has been a consistent downward trend over the past two decades, it is extremely alarming as the figures below go someway to illustrating;
2001 – 28,393 pupils were studying the subject at schools. As of 2020, we only have 10,228.
2001 – 9,825 females were studying the subject at schools. As of 2020, we only have 2,388.
Computing Science at schools needs immediate attention before it is too late, which I fear is a lot closer than we think.
I am hoping you can help me try to reverse this situation, help inspire the next generation and take part in our National campaign.
The Scottish Technology Ecosystem Review, authored by Mark Logan highlighted a number of challenges Scotland faces with regard to Computing Science at school and puts education at the heart of the solution. The Digital Technology Education Charter recognises that if industry and education can work more closely together and join forces we can make a real impact.
This charter is for individuals, schools, colleges, universities, and organisations of all sizes from all sectors. If you want to do more to help inspire the next generation and encourage them to choose Computing Science then join our charter. Together we can do more, we can make a difference.
Get involved here
How the Open University is supporting employers in Scotland to tackle the digital skills gap
There is a thriving Fintech sector in Scotland ”“ a lot of small to medium-sized enterprises (SMEs) are innovating and growing and doing great things. But the sector needs the right skills in order to keep innovating and growing and some of the most business critical skills are in short supply.
With so much demand on skills such as cyber security, coding, data and software development, it can sometimes take time to get the right people onboarded. The Open University’s (OU) Business Barometer 2020 found that 60% of employers are struggling to find the skills they need to fill vacant roles.
But there is the scope to change the situation. Employers recognise that the best way to address talent shortages is not just to buy in skills, but to also build up internal pipelines and so many are embarking on upskilling and reskilling initiatives.
The OU in Scotland works with 260+ local employers, helping with their upskilling and reskilling programmes. They provide high quality, targeted workforce development solutions, helping employers understand and meet their current and future talent and recruitment needs.
“We pioneered the concept of continuous, lifelong learning – an approach that is becoming increasingly popular in the workplace. Our innovative tutor-supported online delivery model works particularly well for employers, maximising the opportunity for new knowledge to be readily and directly applied in the workplace. Many of our programmes have a strong work-based element, meaning that individuals enhance their performance through value-add learning on the job’. We ensure learning is flexible and accessible to all,”
Suzanne McQuade, Business Relationships Manager (Scotland) at the OU
As a result, with over 20,000 students, the OU is the most popular university in Scotland for part-time higher education. They provide different career pathways ”“ graduate and postgraduate courses and also smaller, modular courses that enable people to do chunks of learning and build up to an overall qualification over time.
In terms of digital skills, the OU provides numerous options ”“ free resources on the OpenLearn platform, microcredentials, apprenticeships, modules and qualifications in computing and IT, cyber security and data science, postgraduate modules and qualifications in computing, cyber security and technology management.
There are various funded learning opportunities available in Scotland to support employers and individuals. The graduate apprenticeships, which are a great way for employers to recruit new employees or upskill and reskill the existing workforce, are fully funded. There’s the SAAS part time fee grant available to those with a personal income of £25,000 per annum or less and there’s the Flexible Workforce Development Fund offering SMEs funded training up to the value of £5,000.
It is widely recognised that Covid-19 has exacerbated the need for digital skills. Now is the time for employers to be investing in workforce skills, to help them recover from the pandemic and meet the challenges of the future.
To find out more about how the OU in Scotland can support your workforce development needs, visit www.open.ac.uk/business
Lithuania brings diversity, security and efficiency
Contending for the title of Europe’s Fintech hub, Lithuania has been working at improving its regulatory environment and growing a talented workforce for more than five years now. These efforts have not been in vain, as in 2020, the total number of Fintechs in the country already exceeds 230, having more than doubled since 2017. According to the Fintech Landscape Report 2020-2021, published by Invest Lithuania, there is a near 50/50 split between companies founded by Lithuanians and companies that came from elsewhere, including UK’s finest – Revolut, TransferGo, DiPocket, Curve Europe, and SumUp EU Payments. So, what is it that brings the Fintech boys (and girls) to the yard?
Licensed in Lithuania
As the Fintech sector and its adoption rate continue to grow, regulators in Europe see Fintech as a priority, not an afterthought.
“We have chosen to become a partner for the financial sector, promoting innovation and sustainable growth. One of the objectives of our Fintech policy is to strike the right balance between acknowledging and managing potential risks, while also enabling financial innovation,” says Marius Jurgilas, Board Member at the Bank of Lithuania.
In order to help international Fintechs establish themselves in Lithuania, the Bank of Lithuania changed its working language to English. In addition, a special newcomers programme was initiated to help businesses make better decisions and have a direct dialogue with the regulator before even opening a subsidiary in Lithuania. After setting up, companies get to test their solutions in a regulatory sandbox and can receive access to a proprietary blockchain platform (LBChain) and many novel RegTech solutions. Finally, there’s the Bank’s CENTROlink payments system, providing non-banking institutions direct access to around 50,000 banks and branches abroad. On average, more than 260,000 payments, the value of which exceeds 460 million EUR, are made daily through CENTROlink.
A license issued in Lithuania is passportable and opens the doors to the entire EEA. Due to a straightforward licensing process, Lithuania has become a leader in continental Europe when it comes to the number of electronic money and payment institutions issued. Over several years, the Bank of Lithuania has granted 5 special purpose bank licenses, more than 115 electronic money and payment institution licenses. 23 of “licensed in Lithuania” companies hail from the UK.
A community that never stops growing
Despite being a challenging year, 2020 was successful for a majority of Fintechs operating in Lithuania. 87% of the companies surveyed saw their revenue increase, and over a third saw their revenue more than double. Among the businesses with the highest revenue growth were Fintechs in the Compliance, Payments and Financial Software sub-sectors.
The country also saw new international names joining its vibrant community. These include SaaS banking platform Mambu, payment account aggregator Curve, one of the largest money transfer companies in the world Ria Financial, and automated loan provider Saldo Finance.
Lithuania might not be the biggest country in Europe, but it is leading the continent by the number of new ICT jobs created by international companies. It is also considered one of the most multilingual workforces in Europe, with the average number of languages spoken being 2.7. What makes this talent pool stand out is not just the quality, but also”¦ gender equality, as women comprise nearly 50% of it. And its not just the entry-level positions were talking about! 63% of the Fintechs surveyed have at least one female executive. Having such healthy ratios is not surprising, as more than 55% of all scientists and engineers in Lithuania are women.
AML by design
Last year, more than 81 million payments were made within CENTROlink, with Fintechs generating a volume reaching almost €115.8 billion. Both numbers are double what the system saw in 2019. The number of payment service providers accessing the system has also increased from 85 in 2019 to 117 in 2020. With such impressive growth, the topic of anti-money laundering has never been more relevant.
In October of 2020, the Lithuanian government approved the establishment of a Centre of Excellence in Anti-Money Laundering, which aims to share information on money laundering and terrorist financing typologies and set up a dedicated information exchange platform, carry out studies, assessments and analyses, prepare guidelines and legislative initiatives to improve the country’s AML/CTF framework in Lithuania, assist businesses in conducting internal AML/CTF risk assessments, and more. It will officially open its doors in 2021.
Want to find out more about the vibrant Fintech landscape in Lithuania? Download our Fintech Landscape Report 2020-2021 and see what Europe’s prime Fintech hub can offer you.
How Fintech is Disrupting Customer Service
Technology has changed our way of life so rapidly that it’s hard to even call them “disruptions” any more. Indeed, today’s technological innovations are all about looking at our current way of life and seeing how else to improve it. This also means that technological innovations will play a big role in shaping our way of life post-COVID.
In particular, the World Economic Forum notes that fintech will play a key role in helping businesses recover from the effects of the pandemic. And while fintech’s role in helping businesses raise capital or invest their funds is clear, there’s also another key way that fintech can help accelerate business processes.
Fintech and customer service
Customer service is one of the biggest pillars of any business operation, and this holds especially true in today’s increasingly connected society. The average consumer is more discerning than ever, and it only takes one bad Tweet or Facebook post for word to quickly get out about your company.
As such, ramping up customer service practices will play a key role in ensuring that these goals are met. Digital adoption is already strong thanks to fintech innovations such as e-wallets and mobile investment apps, but customers still need to know how to properly manage their money. Providing accessible customer service options will therefore become a true marker for whether a bank is ready to succeed in 2021 and beyond.
How Fintech is Disrupting Customer Service in Different Industries
Banking
The Telegraph has recently called for an overhaul of the traditional banking business model in order to address rapidly shifting customer changes, particularly when it comes to value creation amongst consumers. This process can start by offering in-chat services within mobile applications; as it stands, many banking applications still rely on uploading phone numbers and emails onto their applications should customers need more assistance. Adopting in-app chats speeds this process up, but it also means that fintech companies themselves will have to adopt unified data systems that allow agents to get the information they need within a few clicks.
Supply chain
The speed information is shared is now the foundation of a successful supply chain. A post on staying productive in the new normal by Verizon Connect states that fast information sharing is a marker to customers that your business is constantly improving its services to meet their demands. The site also notes that the faster information is shared the more agile a company can be in responding to a customer’s needs. This allows companies on the supply chain to serve more customers faster. Logistics companies who rely on GPS tracking and management systems to give timely parcel updates are but one example of how this speedy information improves customer service.
Retail
Our previous post entitled ‘Card Issuing and Management: Staying Relevant Facing Ever Faster Changing Customer Expectations‘ shows that fintech companies have a huge role to play in paving the way for a stronger retail industry in the aftermath of Covid-19. Card issuing solutions are in line with the rise of alternative payments, whether through digital platforms or via online currencies. These developments prove that access to varied payment channels plays a big role in improving a business’ overall customer service.
Fintech disruptions are part and parcel of our new normal. Indeed, the impact of fintech on customer service across several industries proves just how pivotal these disruptions are when it comes to streamlining business operations while still keeping customers in the loop. Businesses are now looking to plan for post-pandemic business growth, and it looks like fintech solutions will be an essential tool to meet these goals.