Encompass’ new white paper unveils key regtech trends
Scotland-based fintech Encompass just published a landmark whitepaper authored by Dr. Henry Balani, Global Head of Industry and Regulatory Affairs at Encompass,
The document shows regulatory pressure concentrated on areas such as Ultimate Beneficial Ownership (UBO) and also an increase in fines against firms for non-compliance, especially crypto exchanges, brokers, asset managers and securities firms, and in the UK and Asia.
Interestingly the white paper also looks at the impact of Russia’s invasion of Ukraine, and the volatile and complex systems of sanctions this has created. These international issues are being exacerbated by internal factors, such as outdated technologies exposing firms to greater risk of non-compliance leading to failure to effectively identify suspicious customers. Internal inefficiencies are also impacting the speed at which regulated firms are reacting to change.
The findings really show how opting for KYC automation can help fight financial crime as the sophistication of perpetrators increase.
Looking at 2023, the white paper mentions likely increases in sanctions regimes and money laundering scandals which should engender new regulations with KYC becoming even more important.
Dr. Henry Balani, Global Head of Industry and Regulatory Affairs at Encompass, commented:
“It is likely that we will continue to see investigative and enforcement activity in all jurisdictions focus on the quality of systems and controls, as well as the true application of a risk-based approach to managing financial crime compliance.
“The ability for firms to demonstrate they have a robust KYC framework, with efficient and effective controls – and a well-defined and comprehensive approach to customer risk assessment – is critical to standing up to regulatory scrutiny.”
Photo by Tima Miroshnichenko: https://www.pexels.com/photo/close-up-view-of-system-hacking-in-a-monitor-5380664/
Tech jobs amongst Scotland’s top 20 salaries increases in 2022
Every year, Hays publishes its Salary & Recruiting Trends guide. It includes over 10,000 salaries across 16 industry areas in all UK regions, including Scotland.
The guide shows that tech jobs still occupy high positions in the top 20, with cyber security analysts and software developers in third and fourth places respectively, with an increase of over 24%.
According to Hays Scotland director, Keith Mason, STEM skills (Science, Technology, Engineering, Maths) are still highly sought after with engineering projects in Scotland likely to be a significant economic driver going forward.
A new entry at number five, events managers can now enjoy a salary of around £37,000, which is a 23% increase in 2022.
“Conferences and corporate events are huge drivers for the hospitality industry,” says Mason.
“This is a sign of organisations wishing to re-establish connections with customers post-Covid. “A good events manager will act as an effective sales person for an organisation, helping them to both boost sales and increase brand visibility in a very competitive sector.”
IT and cyber security, sales, and diversity, equality and inclusion advisors also feature highly.
The overall salary increase in Scotland in 2022 was 5.7%, compared to 5.4% across the UK.
The full list of top 20 salary increases for 2022 is:
| Job | Industry | Salary (average 2022) | % Salary increase since 2021 | ||||||||
| 1. | Fabricator/Welder | Engineering Trade (Manufacturing) | £32,000 | 28% | |||||||
| 2. | Head of Tax/Director | Taxation (In-house) | £125,000 | 25% | |||||||
| 3. | Cyber Security Analyst | Technology (Cyber) | £56,000 | 24.4% | |||||||
| 4. | Product Manager | Technology (Software Development) | £62,000 | 24% | |||||||
| 5. | Events Manager | Marketing (Events) | £37,500 | 23% | |||||||
| 6. | Talent/Resourcing Advisor | HR (Recruitment & Resourcing) | £40,000 | 21.2% | |||||||
| 7. | Marketing Analyst/CRM Analyst | Marketing (Insight) | £35,000 | 20.7% | |||||||
| 8. | Head of Business Intelligence | Technology (Leadership) | £90,000 | 20% | |||||||
| 9. | Salesforce Solution Architect | Technology (CRM) | £105,000 | 19.3% | |||||||
| 10. | Import/Export Administrator | Business Support | £25,000 | 19% | |||||||
| 11. | Financial Planning & Analysis Manager | Accountancy & Finance | £72,500 | 18.9% | |||||||
| 12. | Head of IT Security | Technology (Leadership) | £95,000 | 18.8% | |||||||
| 13. | Engineering Operative | Engineering Trade (Manufacturing) | £26,000 | 18.2% | |||||||
| 14. | Manufacturing Manager | Engineering & Manufacturing (Defence) | £65,000 | 18.2% | |||||||
| 15. | Machine Learning Scientist | Technology (Data & Advanced Analytics) | £65,000 | 18.2% | |||||||
|
16. |
Digital Manager |
Marketing (Online & Digital) |
£60,000 |
17.6% |
| 17. | Automation Engineer | Engineering & Manufacturing (Defence) | £48,000 | 17.1% | |||||||
| 18. | Diversity, Equality & Inclusion Advisor | HR (DE&I) | £35,000 | 16.7% | |||||||
| 19. | Salesforce Project Manager | Technology (CRM) | £58,000 | 16% | |||||||
| 20. | Information Security Manager | Technology (Cyber) | £75,000 | 15.4% |
https://www.hays.co.uk/scotland
Photo by Vojtech Okenka: https://www.pexels.com/photo/person-holding-apple-magic-mouse-392018/
Codat recognised in Open Finance Global Rankings
Fintech Codat, part of the FinTech Scotland community, has been recognised in the Open Finance Global Rankings.
The rankings is released every year by Open Future World to highlight the organisations, countries and individuals who are leading progress in open finance around the world.
Codat, the fintech that helps companies build B2B solutions for SMEs using Open Banking, appeared in the top 20 of this year’s rankings. This is a real achievement when taking into account that Open Future World look at over 1,000 organisations from almost 80 countries.
Marie Walker, Open Future World co-founder commented:
“After a year that has seen plenty of challenges, the global rankings are a timely reminder of just how much the open finance movement is achieving ”“ and how much more there is to come,”
Rankings are calculated based on appearances in Open Future World’s widely-read Daily Edit of news, opinions, launches and raises.
New scheme to improve identity checks when buying and selling property
Etive Technologies (Etive) is working with the Home Builders Federation (HBF) to support homebuilders in complying with government regulation and make identity and anti-money laundering checks easier, faster, and more secure.
Throughout the home buying and selling process consumers must provide the same information to prove their identity and confirm details about themselves numerous times. This leads to a frustrating user experience and duplicated effort and costs across the industry, with organisations paying to carry out the same checks on the same consumers.
Etive has been working with the Home Builders Federation to develop a verification scheme to address the current challenges associated with the verification process, and support compliance with the Digital Identity and Attributes Trust Framework developed by the Department for Digital, Culture, Media and Sport (DCMS).
The MyIdentity® scheme enables consumers to carry out digital identity and anti-money laundering checks and share them with organisations as and when they need to. This means checks can be carried out at the beginning of the buying/selling process, reducing customer friction and duplication of effort.
As part of this work, Etive is developing additional identity verification standards that go beyond the framework’s rules, in a bid to better meet consumer and industry needs. It has been working with a cohort of representatives from Barratt Developments PLC, Bellway PLC, Berkeley Group, Miller Homes Ltd, Persimmon PLC, Telford Homes Ltd and the Vistry Group PLC to explore these additional standards and is now seeking views from the wider industry.
A Department for Levelling UP, Housing and Communities (DLUHC) spokesperson says: “As per our commitment in the Levelling Up White Paper, essential checks to verify identity should be as streamlined as possible so home buyers and sellers do not have to go through the process repeatedly, with all the delays and extra costs this can incur.
“We are pleased to see the sector is building on the identity trust framework to make the verification process more straightforward and less frustrating for consumers.’”
A HBF spokesperson says: “Homebuilders are committed to continually improving the experience of customers and this scheme is a further demonstration of this.
“As well as simplifying the identity verification process, the scheme supports homebuilders to comply with government requirements and reduce duplication of effort so our members can focus on building much needed homes.”
The MyIdentity.org.uk® scheme needs to ensure that that it can represent the views of all new home builders. If you would like to contribute and help influence the scheme requirements fill out the online survey by the 30th January 2023.
Scotland’s fintech cluster fuelled by record number of SME firms and a 200% jump in investment funding
FinTech Scotland announces, on its fifth birthday, a further increase in the number of entrepreneurial fintech SME firms as well as a record-breaking new investment funding for the year.
In the last 12 months, Scottish fintechs received over £305m in funding supporting their growth and development, representing an increase of over 200% on the previous year
Over 60% of funding was raised by fintech SMEs focused on payment and data innovation, while other innovation categories raising significant investment were wealth management solutions and financial regulation.
In addition, 2022 saw the number of Scottish fintech SME firms increased to 211, a 13% increase over the year, driven by both new fintech start ups and international firms setting up in Scotland.
Commenting on another record-breaking year, Nicola Anderson, chief executive said:
“I am continuously inspired by the progress achieved by fintech entrepreneurs who continue to accelerate innovation, change and growth across the cluster. The record levels of investment in 2022, reinforces the value of of fintech innovation, and propels us to continue driving cluster excellence, build on the recognition the we achieved in 2022, and the role we play in contributing to the growing wider UK fintech ecosystem.
As we enter 2023, I am excited to be developing the opportunities with entrepreneurs, industry and academic partners, Scottish Enterprise, Innovate UK, Financial Conduct Authority along with other clusters across the UK as we execute our ground breaking Research and Innovation Roadmap”
Adrian Gillespie, Chief Executive of Scottish Enterprise, added: “
The growth of Scotland’s fintech sector demonstrates what can be achieved when all partners work collaboratively to create an ecosystem that is attractive to companies and investors.
“FinTech Scotland has made an enormous contribution to developing our country’s fintech sector since its inception. We look forward to continuing to work in partnership with FinTech Scotland and all other stakeholders to deliver even more economic opportunities in this vibrant sector over the coming year.”
FinTech Scotland has confirmed for the coming year its strategy to continue leveraging cluster excellence credentials to drive innovation and build on the valuable collaboration with fintech centres around the UK.
This will also include a focus on supporting fintech SMEs scale-up through increased collaboration with the thirty FinTech Scotland partners as well as major economic initiatives with Smart Data Foundry and a new centre of excellence for innovation in financial regulation.
The Ardonagh Group selects fintech AutoRek
Scottish fintech AutoRek, just announced that The Ardonagh Group was the latest addition to their client list.
The UK’s largest independent insurance distribution platform selected AutoRek as they want to drive efficiency in key back and middle office Insurance Broker Accounting (IBA) processes using intelligent automation technology.
AutoRek will support two key areas of the IBA operations within the group:
- Automation of the statement reconciliation process (Over 2500 statements monthly, made up of over 400 different formats) against two key Policy Administration Systems (PAS), Acturis and OpenGI. AutoRek will then feed the output of reconciliations through the Ardonagh PAS systems so results can be posted back into systems and updated in records.
- Reconciliations in the Cash Posting and Allocation (CPA) team, including matching cash payments from banks, card transactions and premium credit against records held in the Ardonagh Acturis and OpenGI PAS systems. The output of these reconciliations will then be loaded back into the PAS systems and allocated out on a policy level, updating the systems.
Gordon McHarg, CEO at AutoRek, added,
“It is a huge success for AutoRek to have the calibre of a client such as The Ardonagh Group come on board. We see potential to work together over the coming years on many different projects.”
Piers Williams, Insurance Lead at AutoRek, added,
“We are delighted to be working with The Ardonagh Group and helping the business achieve its objectives in the coming years. AutoRek continues to grow its insurance presence quickly, and it is great to see that our No Code intelligent automation solution continues to improve back and middle office financial operations processes while increasing operational efficiency.”
Paula Jones, Head of IREC at Ardonagh Advisory, added,
“The IREC solution and build with AutoRek will revolutionise the end-to-end process within The Ardonagh Group. Enabling our fast-growing business through organic growth and the targeted acquisition plans to integrate the key finance operations smoothly and efficiently”.
Bari Irving-Philips, Head of IBA and Client Money at Ardonagh Advisory, added,
“It is an exciting time for The Ardonagh Group to be working with AutoRek. The AutoRek platform and No Code technology will enable the Client Money function to work smarter and more intelligently; further enhancing the contribution that the function brings to the Group and our Clients & Insurers.”
DirectID appointed as Fintech Champion for Nations
The Department for International Trade (DIT) has announced the Fintech Champions for Scotland and Wales at the Board of Trade meeting in Wales today.
DirectID have been appointed as the Fintech Champions for Scotland, with Yoello selected as the Welsh Fintech Champion. They join the previously announced Northern Ireland Fintech Champion FinTru, meaning that a Champion is now in place across each of the devolved nations.
The Fintech Champions scheme was established by DIT last year as a way of better supporting the UK Fintech industry. Each Fintech Champion will be tasked with working alongside other industry leaders to elevate the UK’s status as a global Fintech hub.
They’ll also be asked to help promote expansion around the world and help businesses scale-up and up-skill by providing one-to-one sector-specific advice.
Minister for Exports Andrew Bowie said:
“Fintech is already worth billions to the UK economy, and we’re keen to see the industry continue to grow over the coming years.
“With these two companies joining the Fintech Champions programme, we now have expertise supporting businesses across all four nations who want to scale up their operations.
“Both are leaders in the industry and will do a fantastic job promoting the UK’s place as a global Fintech hub.”
The UK is already a world leader in Fintech, owning more than 10% of the global market share and is forecast to grow dramatically to £380 billion by 2030.
The UK also secures 11% of all global investment into the sector, attracting nearly half of all investment in Europe. Innovate Finance estimate total investment into British fintechs jumped more than 217% to $11.6bn in 2021.
With an increasing number of Fintech firms exporting globally from the UK, DIT is helping the sector take advantage of our global trade links, ultimately creating more jobs and driving further investment into all corners of the country.
The new Scottish Fintech Champion, DirectID, was the earliest open banking pioneer, and provides advanced open banking data for credit & risk decision makers in 46 countries.
James Varga, CEO & Founder at DirectID said:
“I was incredibly humbled and excited when I was invited to help champion exporting in the Fintech sector.
“DirectID now powers some of the world’s biggest brands in North America, Europe and Asia to scale, drive efficiencies, manage risk, and create fairer outcomes for their customers.
“Whether it’s working with other industry figures to promote the UK as a place to do business, or sharing knowledge of our experience exporting to multi-national organisations, I’m proud to be supporting the growth of the £11 billion UK fintech economy.”
Dapio, live in BETA on Google Play in the UK
The Dapio app has arrived! With the launch of its groundbreaking smartphone app in beta, receiving payments just became a whole lot easier. For business owners looking for a smarter way to process transactions, they’re just one download away from a world of ease and convenience. The payments revolution has begun.
What is Dapio Tap to Pay?
In short, Dapio Tap to Pay is a simple, fast, contactless way to get paid. They make it easy to turn your smartphone into a direct card reader, so small businesses can get paid wherever they are, and whenever they need to.
To demonstrate just how easy it is to receive a payment, Dapio’s very own co-founder and CEO Kosta Du recently made the first ever Tap to Pay transaction in the UK. And he got it all on video!
Using the technology that already exists in an NFC-enabled Android smartphone, card transactions can be made in just a few seconds. A user simply opens the app, types in the required amount, and their device will transform into a dedicated card reader.
What are the main benefits of Dapio Tap to Pay?
Remember the old adage – time is money’? These days, commerce moves at lighting speed, which is why modern business owners require a simpler payment solution to help execute transactions, fast.
For Android users, that solution is only a few taps away, with the release of the Dapio smartphone app. Using Dapio Tap to Pay, Sellers can enjoy a scalable payment tool that can keep pace with their thriving business.
Here are some additional benefits that Dapio Tap to Pay provides:
Simple user interface
A streamlined mobile app allows even those with minimal tech expertise to process payments in seconds.
Portable payments
Say goodbye to clunky card readers, with a versatile payment solution, built for on the go’.
In-depth reporting
Access instant overviews of all transaction data, with performance insights and team management tools.
Is it safe?
With extensive safeguards to help protect customer and merchant data, the app maintains a safe transactional environment in which payments can be received. From data encryption to advanced fraud protection, Dapio’s PCI certified safety protocols help provide an extra layer of protection for all users. That means payments can be executed with confidence.
Who can use it?
Accessibility is one of Dapio’s main priorities. The Tap to Pay app is a one-size-fits-all solution to help businesses big and small improve the way they receive payments.
- Side hustlers/gig economy workers
- Cafes/restaurants
- Independent shops
- Gyms/fitness studios
- Delivery and transportation services
Dapio is currently available for all UK small businesses looking to level up their payments experience. Users can sign up on the Dapio website and will receive an invite to their Google Play BETA app.
New fintech collaboration to tackle cost of living crisis
In collaboration with Scottish fintech Inbest, NatWest Group has launched a benefits calculator for its customers. The tool allows people to see what benefits they could be entitled to and offers personalised signposting to local support points and organisations.
With the current cost-of-living crisis, ensuring that people access cash instead of debt is very important. In 2021, it is estimated that over 7 million people missed out on over £15bn of unclaimed benefits[1].
Manu Peleteiro, founder and CEO of Inbest explains that on average people using the tool have been able to access £5,000 unclaimed benefits which would go a long way in helping people to face inflation.
The initiative forms part of a much wider effort by NatWest to support its retail customers, including offering approximately 0.6m financial health checks, and proactively contacting 8m customers with support and information on the cost of living so far in 2022.
This collaboration was enabled by cluster management organisation, FinTech Scotland, which thrives to connect innovating fintech firms with established financial institutions.
The 3-month pilot of the calculator is being monitored closely before a wider roll-out to ensure customers are getting the best outcomes.
Peleteiro said:
“Benefits have powerful features to help people increase their income, reduce their expenses, and save for their future. Making sure that people are getting all the benefits they are eligible for is a great first step in a money management plan for the cost-of-living crisis. We’re looking forward to working with NatWest and helping their customers find and manage their benefits directly from the NatWest ecosystem.”
Kristen Bennie, Director of Innovation & Partnerships at NatWest Group, said:
“Making Inbest’s innovative benefits calculator available to our customers provides a critical avenue of support against the backdrop of increased cost of living pressures. Collaborating with Inbest on this pilot allows us to provide relevant, tailored and personalised insights, so we can provide support where and when our customers need it most.”
Nicola Anderson, CEO at fintech Scotland declared:
“The partnership between Inbest and NatWest is a powerful example of the purposeful impact that can be achieved through intentional collaboration between large organisations and fintech innovators. We’re proud to see this in action. NatWest has been deliberate in its focus to find new options and solutions for customers at a time of increased cost of living pressures. I know the capabilities at Inbest will make a positive difference for NatWest customers and look forward to the outcomes.”
[1] Charity Turn2Us
Scotcoin launches carbon offsetting service
The Scotcoin Project (CIC) just launched Scotcoin Carbon Offset which allows individuals and businesses to offset their carbon footprint and support the drive to net zero by providing a discount to those who pay with Scotcoin (SCOT), while also accepting payments in pounds sterling.
People can purchase a single tonne of carbon for £20 (10 tonnes would cover the average carbon consumption for a person each year). Businesses can get in touch with the Scotcoin Project to talk about their specific needs.
2022 saw the Scotcoin Project CIC achieved carbon neutral status by offsetting 100 tonnes of CO2 through investment in a project delivered by the United Nations Framework Convention on Climate Change (UNFCCC) Adaption Fund, which seeks to reduce the emissions of harmful greenhouse gases.
Scotcoin seeks to use crypto as a force for good, supporting a range of charitable and environmental projects that boost Scotland’s ambitions for a greener and fairer society.
Temple Melville, CEO of the Scotcoin Project CIC, said:
“We are using cryptocurrency in a unique way to help Scottish people and businesses make their contribution to the country achieving net zero. While offsetting is not the only answer, carbon emissions are an inevitable result of many of the things people do in day-to-day life and in the way businesses operate. It’s not possible to cut all of that out altogether, but it can at least be offset and we believe crypto can play an important role in making that happen.
“We have the flexibility to sell single tonne quantities, which means even individuals can offset what they produce in a year through activities like sending emails or drinking coffee if they want to proactively do more for the planet. The climate crisis remains the biggest challenge society faces and we hope that our carbon initiative, via Scotcoin Carbon Offset, will incentivise more people and businesses to do as much as they can to help us reach net zero.”
To find out more, please visit: www.scotcoincarbonoffset.com