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FCA consultations on Innovation PSD2

Article written by Nicola Anderson, Senior Manager Retail Banking Supervision at the FCA.
Nicola just joined FinTech Scotland on a 1 year secondment.

After a slightly delayed start I’m delighted to have arrived at Fintech Scotland and I’m looking forward to being part of the team there for the next year.

Thanks to Stephen, Mickael and Shery for making me feel so welcome and part of the team. I’ve been out and about most of the week, meeting stakeholders and learning about the work, the innovation, collaboration and general mood of optimism! I’m looking forward to more of the same over the coming weeks and hope to meet many of the Fintech businesses in the next few weeks.

One point of interest has come up this week that I wanted to mention. I’m sure you’re already aware that the FCA has published a couple of consultation papers relevant to Fintech, Innovation and PSD2. Both papers are still open for views or responses, and links to both are attached below. The FCA welcomes input and perspective from interested parties and in particular those with experience on the subject. Through gathering views, next steps and further direction can be shaped in an informed and useful way. You can feed back directly on some or all of the questions posed in each paper.

PSD 2 consultation paper – closes on 12th October. The paper is focuses on:

1. The Regulatory Technical Standards for strong customer authentication and common and secure open standards of communication (SCA-RTS).
2. Domestic implementation before the EBA exemption guidelines are finalised
3. New fraud reporting requirements that will affect the data collected and reported by all PSPs

In addition the FCA is taking the opportunity to update its Payment Services and E-Money Approach Document guidance to reflect other legislative changes and clarify existing expectations based on experience of the regime (eg, of processing applications) since September 2017. These proposed amendments and additions are in Annex 3 of this consultation paper

https://www.fca.org.uk/publications/consultation-papers/cp18-25-approach-final-regulatory-technical-standards-and-eba-guidelines-under-revised-payment 

Global Financial Innovation Network (GFIN) – deadline for responses is 14 October.

https://www.fca.org.uk/publication/consultation/gfin-consultation-document.pdf

This consultation sets out three main functions of the GFIN:

1. Act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models:

2. Provide a forum for joint policy work and discussions; and

3. Provide firms with an environment in which to trial cross-boarder solutions.

As part of consultation the FCA is seeking views on the mission statement for GFIN, its proposed functions, and where it should prioritise activity.

Do contribute to both or one of the consultations if you can and think it’s relevant to your business.

Best

Nicola

Shirley-Anne Somerville MSP welcomes Renovite Technologies’ plans for expansion

Shirley-Anne Somerville, the MSP for Dunfermline and West Fife MSP, met with senior members of staff and specialist developers at Renovite Technologies earlier this week to learn more about the businesses plans for expansion in the months ahead.

On October 1st, Ms Somerville was briefed by chief operating officer Jim Tomaney on Renovite’s plans for expansion and the payments software course the business is creating in collaboration with Fife College for the newly announced Fintech Skills Academy ’, which is scheduled to pilot in January 2019.

Earlier this year, an announced was made by the Scottish Government that Renovite Technologies received a £250,000 Regional Selective Assistance (RSA) grant from Scottish Enterprise for 28 new roles, three times the number currently employed by the payment specialist.

Jim Tomaney, chief operating officer, at Renovite Technologies said:

“We are grateful to Ms Somerville for her support and for taking the time to find out more about our plans for the business. It’s been a good year for us and we are looking forward to taking on a healthy number of new staff in the months ahead.

“In September, we launched Scotland’s first Fintech Skills Academy’ with Fife Council and Fintech Scotland which will be kicking-off in Fife College early next year. Today, we were able to give Ms Somerville a preview of what we are hoping to teach students and potential employees that sign-up to our specialist payments course, enabling them to hit the ground running.”

Dunfermline and West Fife MSP, Shirley-Anne Somerville added:

“As a growing hub of technology and innovation, it’s welcome news that companies are continuing to find new ways tap into Dunfermline and West Fife’s huge economic potential.

“Renovite’s growth plans, backed by their recently awarded Scottish Enterprise grant, will represent a substantial investment in the local economy, with the creation of new, highly skilled jobs.

“I’m delighted to see the company working with Fife College to help create new skills bases in our local area. Investing in young people will pay dividends in years to come, developing a workforce ready to take the lead in the fields of science and technology.”

Scotchain18 – not another blockchain event

THIRD ANNUAL SCOTCHAIN EVENT WILL FOCUS ON THE GRITTY ISSUES OF BLOCKCHAIN COSTS, COMPLEXITY, SCALABILITY, SECURITY AND PRIVACY.

Scotchain will once again be hosted at RBS Gogarburn in Edinburgh on 8th November and will ensure its not just another Blockchain event by tough talking on the challenges faced by industry in the race to embrace distributed ledger technologies.

MBN Solutions have proudly announced the line-up for their annual, not for profit, Blockchain event which will once again be hosted by RBS Gogarburn in Edinburgh. Unlike many Blockchain events which seem focused on the hype and hyperbole, MBN and Spiritus pride themselves in bringing Scotchain to life to help tackle the challenges and focus on the reality of how Blockchain can disrupt industry and bring about a step change in embracing disruptive innovation.

Susan Ramonat, Chief Executive of Spiritus Partners and event co- organiser said, “Each year, this event attracts some of the best speakers globally and this year is no exception. Scotchain always attracts world-class speakers, entrepreneurs and organisations who’ve got a ‘sleeves rolled up’ mindset. They’ll talk about what’s real and what’s actually happening. They also won’t pull punches about the hard challenges remaining to be tackled for blockchain to deliver value – to make good on its promise of transforming key elements of how enterprises, government, academia, and the third sector operate.”

Scotchain 18 will see this year’s event evolve to tackle challenging issues of how to get the most from this exciting and disruptive technology.

Chairman of MBN Solutions, Paul Forrest said “Attending Blockchain and practitioner events can be a lottery as the agenda often exposes much of the audience to little more than a Blockchain shop window’. Scotchain refuses to follow suit with a genuine desire to cut through the hype and hyperbole by assembling the world’s leading authorities on Blockchain and building an audience led agenda. With a focus on answering real questions about how to embrace such technologies, Scotchain will equip participants with valuable insight from those with genuine experience of bringing Blockchain solutions to the market.”

This year’s event will facilitate a deeper understanding of what Blockchain enables and supports – how it complements and extends the value of other disruptive technologies such as AI, machine learning and IoT, that are rapidly transforming our lives and society, and the extent of the regulatory environment in which it operates.

Kent Mackenzie, Deloitte’s Risk Advisory Leader for Fintech and RegTech stated, “The growth in interest and applicability of blockchain technology has gathered a huge amount of momentum over the last few years, with practical examples of this type of technology being used across a range of sectors from healthcare, to distribution, to financial services. This year I am particularly interested to explore the perspective regulators and policy makers are forming to ensure we set out a responsible yet conducive framework to allow more innovation to occur, but in a way that looks after the interests of the consumer and the end-user.”

Scotchain promises to be a gamechanger covering topics and subject matter ignored by most other events. With an agenda designed to challenge current knowledge and thinking and a panel session intended to provide deep insight, Scotchain 2018 is this year’s must attend Blockchain event.

Michael Young, Chief Executive of MBN Solutions said “Our event is open to all no matter what level of prior knowledge you have or from whatever sector you work in. As in previous years, there will be a healthy degree of networking and knowledge exchange between participants from across a range of sectors including fintech, healthcare, life sciences, manufacturing or energy; the arts, travel, tourism and entertainment. Whether you work in a hugely commercial business, the public sector, academia or a third sector venture, you will find something for you with our carefully assembled agenda.”

”‹Previous Scotchain events have showcased knowledge, success and engagement with Blockchain at a level rarely seen elsewhere. MBN believe much of this is due to the vibrant and thriving Blockchain and Data Science communities that exists in Scotland. With Scotland leading the way in this exciting disruptive technology, this event will extend the notion that Scotland is a genuine contender for the title of World Class Centre of Excellence’ when it comes to Blockchain and Distributed Ledger technologies.
Scotchain 2018 will take place on the 8thNovember at RBS Gogarburn, Edinburgh. For more details visit www.scotchain18.com
More about MBN Solutions
MBN Solutions is a leading recruitment and resourcing business based in Glasgow operating globally. With deep skills and expertise in the area of Big Data, Data Science, Insight & Analytics and Blockchain, MBN prides itself on finding the very best people for demanding clients seeking to solve complex data problems.

Equate Scotland launches a Careerhub designed to attract more women into science, technology and eng

According to the EY and Innovate Finance UK FinTech Census Report(2017) women make up only 29% of the UK’s FinTech sector and 17% of senior positions.

This is not surprising as both tech and finance have traditionally been male dominated fields. As such, these sectors have been limited in perspective and experience, but, the inclusion of more women and greater diversity in general offer fresh insights and ideas. After all, money and technology plays apart in everyone’s lives.

If you are able to identify a problem in the financial system and wonder how it can be improved through technology, FinTech may be career for you regardless of gender, age, race or background. But reaching a wider audience, especially for SME’s can be a challenge.

To address this Equate Scotland have launched the Careerhub. Scotland’s first job board specifically designed to recruit women into science, technology and engineering related roles.

Businesses are aware of both the economic and social benefits of having a diverse workforce, yet time and time again we hear employers say they would like to hire more women, they just simply don’t get applications from female candidates and this is reflective of their workforce. Yet, simultaneously employers say they can’t find people with the right skills.

Over the past 11 years, Equate have built up Scotland’s largest network of women in STEM and through speaking to our network we understand what women look for when applying for jobs. The Careerhuboffers employers advice on inclusive recruitment practice and tips on how to make their job description more appealing to female candidates.

Advertising through Equate offers companies an opportunity to be considered an employer of choice’ for women in STEM, demonstrating that they are actively taking steps towards creating an inclusive working environment.

We know there are qualified women in Scotland, but 73% with a STEM qualification leave their sector eventually. To attract and retain talent, employers need to ask why women are leaving and adapt their business model. There is no silver bullet to achieving gender parity in the sector but small consistent changes can transform culture and the perceptions of the industry.

As FinTech emerges as a leading sector for Scotland it has the opportunity to embed diversity from the beginning and contribute towards creating an inclusive, thriving economy.

Announcing The Scottish BREXIT Business Summit 2018

Paul Hooper is Head of Marketing for City & Financial Global Ltd

City & Financial have just announced a 0ne-Day Conference on 21st November 2018 in Edinburgh.

The objective of the summit is to examine the implications of Brexit for Scotland’s future in the round, including the critical devolution issue, how Scotland can preserve its important links with Europe and the various scenarios for trading in the post-Brexit future.

Building on the success of the BREXIT portfolio including The Post-Brexit UK Trade Policy Summit, The UK Financial Services BREXIT Summit, and The EU Withdrawal Bill Summit, this event will bring together leading experts from the Scottish and UK Governments, as well as representatives from a range of Scottish companies, in order to provide a cross-cutting view of the implications of Brexit for the future of the Scottish economy and how Scottish companies should be planning for it.

The event will also provide a forum in which industry can share its ideas and concerns with government.

The speaker line-up includes:

  • Michael Russell MSP,Cabinet Secretary for Government Business and Constitutional Relations

  • Adam Tomkins MSP,Scottish Parliament

  • Murdo Fraser MSP,Scottish Parliament and Member of Brexit Cross Party Group

  • Stephen Ingledew,Chief Executive, FinTech Scotland

  • Graeme Jones,Chief Executive, Scottish Financial Enterprise

  • Gary Marshall,Head of EMEA, Standard Life Aberdeen

  • Andrew McRae,Scottish Policy Chair, Federation of Small Businesses

  • Alexandra Renison,Head of Europe and Trade Policy, Institute of Directors

  • Neil Francis,Director- International Trade and Investment Operations, SDI

Key themes in the programme include:

  • The UK Government’s BREXIT plan

  • The Scottish Government’s perspective on BREXIT

  • The EU Withdrawal Bill and the devolution issue

  • The transition period and contingency planning

  • What does Scotland need from a Free Trade Agreement?

  • How will the proposed Free Trade Area in Goods work in practice?

  • Understanding the planned customs arrangements

  • Trade in financial and non-financial services: how will the UK Government’s expanded equivalence regime operate?

  • Global Britain’ and Global Scotland’: making allies and forging new trade relationships with other developed and developing countries

  • Freedom of movement and the long-awaited Immigration Bill

As demand for attendance at the event is likely to be high, early booking is recommended.

The full event programme and confirmed speakers can be viewed on the event website by clicking here.

We’ve agreed a discount with FinTech Scotland. When registering, use the code BREXSC1FT

Cost:
Delegate Fee: £495 + VAT. Discounted fee with code: £396.00 + VAT

Public Sector: £295 + VAT. Discounted fee with code: £236.00 + VAT

Small Company (less than 50 employees in company or group): £195 + VAT. Discounted fee with code: £156.00 + VAT

Scotland’s first ”˜Fintech Skills Academy’ launches in Fife

A group of actors including international fintechs, Fife Council, Fife College and Fintech Scotland, have joined efforts to launch Scotland’s first Fintech Skills Academy’.
Various Fife based fintechs got involved including Renovite Technologies, Ingenico Group and Paywizard.
The Academy will provide highly skilled and qualified applicants for an industry which is always in demand of new talents.
Jim Tomaney, chiefoperating officer at Renovite Technologies said:
“The Fintech Skills Academy programme will help candidates successfully prepare for new roles while at the same time, help employers by improving candidate’s understanding of the standards Fintech employers want. It’s a win-win scenario that we hope will be replicated nationwide.”
Piloted from January 2019
The courses will be open to both young people about to start their first job and adults with a background in IT who want to update their skills and knowledge to be future-ready.
Teaching will be a mix of practical industry experience and a learning framework designed in a collaboration between Fife College and Fintech businesses.
Students will be offered various specialisation options including:

  • payment processing

  • systems testing

  • device certification

  • business domain knowledge

The launch was the curtain raising event of the Fintech Scotland’s Fintech Fortnight which runs from September 13th”“ 27th.
Stephen Ingledew, chief executive of FinTech Scotland, said:
“Developing people’s skills in an imperative for the future growth of the fintech sector in Scotland and the launch of the Academy is a further indication that the community is turning its aspirations into tangible actions that will create great opportunities. It is very poignant that the Academy is being launched in Fife which has a deep heritage of innovation in financial services, especially in the category of payments, and I am delighted the initiative is being unveiled at the start of FinTech Fortnight.”

Fintech 2018 Summit: Connecting the Scottish Financial Technology Community

Scotland is home to a burgeoning financial technology scene; driven by an ecosystem of exciting Fintech start-ups, large FS firms, universities and public sector bodies, it has attracted almost £37 million worth of investment in the past decade.

Fintech is a highly competitive global industry and, although there are numerous challenges to be overcome, we have the right mixture of ingredients for this thriving sector to continue to go from strength to strength.

Heritage, innovation and skills

The country has a rich heritage of financial services and, outside of London, Central-Scotland is seen to have the most well-rounded financial and business services cluster in the UK.

Scotland boasts an impressive track record of innovation and invention, with word-class universities and a diverse skills base across critical related disciplines such as data science, cyber security, software development and entrepreneurialism.

And while the Scottish ecosystem may be dwarfed in scale by larger hubs in the US and China, for many the small size, close proximity of stakeholders and the cohesive nature of the ecosystem is perceived as Scotland’s greatest strength.

Networking and collaboration

Networking and collaboration are key to the continued development of Scotland’s tech industry. That’s why events, such as DIGIT’s fifth annual financial technology summit Fintech 2018are so important.

Fintech 2018 will explore the evolution of the financial services sector, from developments in established tier-1 firms to the disruptive innovators within the start-up community that are reshaping the FS market.

The summit is geared for senior technologists, business leaders, academics and investors from across the financial service landscape. The event will bring these key stakeholders together for knowledge exchange, discussion and cross-pollination.

Hopefully, these kind of events will help the industry to create the open, collaborative ecosystem required to ensure Scotland becomes a leading global Fintech hub.

 

Fintech 2018 will be held at Edinburgh’s Dynamic Earth on 19th and 20th September. For full conference details, visit https://www.fintech18.com/

FinTech Scotland announces Prudential UK as a strategic partner

FinTech Scotland is delighted to announce Prudential UK as a strategic partner.

Prudential UK, part of the UK and European savings and investments business of Prudential plc,is driving digital transformation and fintech innovation across a wide range of its long-term financial solutions to createa simple, modern savings and investment business focused on customers and financial advisers.

The strategic partnership with FinTech Scotland reflects Prudential UK’s strong ongoing commitment to playing a lead role in the digitalisation of financial services in Scotland and across the UK and is demonstrated by the opening of its new innovative, ground-breaking office hub in Edinburgh, for its Wealth Solutions business.

From its new Edinburgh office, the firm will drive digital and data innovations to create financial solutions for customers and independent financial advisers. It will bolster the broader fintech developments in Scotland by increasing collaboration with innovative entrepreneurs and develop opportunities for talent in order to accelerate the digital transformation of its business.

On securing the FinTech Scotland strategic partnership, Prudential UK’s Managing Director of Wealth Solutions, David Macmillan said: “In a short-period of time FinTech Scotland has assembled an impressive range of strategic partners which we’re delighted to be joining. Innovation through collaboration is the key to firmly establishing Scotland’s long-term fintech credentials and FinTech Scotland is uniquely positioned to help make this happen. The quality of the fintech community in Edinburgh convinced us to locate our new facility in the city and since doing so in May we’ve not been disappointed.

“We look forward to actively developing the already solid reputation of the community and relish the opportunity to work alongside our universities, government agencies and the other partners to foster entrepreneurial talent across the sector.”

With the pension savings, investments and wealth management sectors being so prevalent in Scotland, the partnership with Prudential UK was an important step for FinTech Scotland.

Chief executive Stephen Ingledew said: “We’re delighted to welcome Prudential UK as a new strategic partner who are very much leading the way to innovate in the pensions, investments and wealth management sectors with new technologies.

“I am hugely impressed with their ambitious plans and leadership in transforming financial services. Their appointment very much complements the other recently announced strategic partnerships and ensures we are reflecting the fintech opportunities across all aspects of financial services in Scotland and globally.”

Prudential UK is joining IBM, Equifax, Pinsent Masons, Deloitte, Dentsu Aegis Network and Sopra Steria as strategic partners to progress the development of the fintech ecosystem in Scotland and its Managing Director of Wealth Solutions, David Macmillan, will also join FinTech Scotland’s board.

AIMday® Fintech: collaboration to tackle real-world problems

Fintech is changing the world of finance through innovation. Discuss your fintech challenges with expert academic researchers from the University of Edinburgh.
AIMday® Fintech brings together businesses and world-leading specialists to tackle real-world problems posed by current and future trends in the broad field of fintech.
AIMday Fintech, on 28 November, hosted by Edinburgh Innovations, the innovation management service of the University of Edinburgh, is a collaborative one-day knowledge exchange event. The event comprises multiple one-hour workshops based on challenges and questions put forward by companies.
Allowing industry leaders to join forces with University of Edinburgh researchers to address fintech business challenges and build new partnerships.
The AIMday (Academic Industry Meeting day) format allows companies to pose questions in advance of the event, which are matched with researchers specialising in the relevant field. On the day itself, businesses and academics address the challenges together to explore potential solutions and build partnerships.
The University of Edinburgh is home to expertise in finance, data science and digital innovation, making us well placed to help your organisation address its fintech challenges by working with academic experts from across the University. Companies are invited to put forward multiple questions and we particularly welcome questions on the following topics:

  • Blockchain

  • Cyber security

  • Product and service design

  • AI and machine learning

  • Policy, ethics and regulation

  • Big data, analytics and modelling

Businesses have until 10 October to register their questions for AIMday Fintech.
Blog provided by Edinburgh Innovations

Castlight – CaaS tool extended across the affordability spectrum

Blog written by Phil Grady, Chief Executive, Castlight

Over the last couple of years Castlight Financial has invested in the development of our CaaS (Categorisation as a Service) tool, to provide a range of affordability solutions.

The CaaS engine, powered by our own API, uses open banking technology to allow a customer to share his or her transactional information in real time. CaaS then categorises the transactions across any number of accounts into 155 categories of expenditure and 29 categories of income. Categories include credit commitments, essential costs and discretionary spending and then drills right down to all sorts of discretionary spending such as Costa coffees on the way to work, lottery tickets and haircuts.

Up until recently, the CaaS technology has primarily driven our popular Affordability Passport, used by lenders to get a full picture of a customer’s finances at the press of a button. Given that the Affordability Passport process also eliminates the need for lenders to trawl through bank statements and pay slips to review discretionary and non-discretionary spending, lenders are able to offer customers a transformative 10-minute mortgage process. When the market typically assumes an average consultation of around 3 hours with a mortgage broker to secure a loan, the Affordability Passport is truly shaking up the lending industry.

Leading UK banks and brokers have been quick to embrace the Affordability Passport and are currently rolling it out to their customer bases.

But we’re a team of disrupters and we like to keep making ripples in markets, so this summer we took the decision to extend the implementation of CaaS right across the affordability spectrum.

Let’s assume that most people using our Affordability Passport are looking for a mortgage or a loan to enhance their lifestyle. They use credit, but they don’t have problems with debt. They are somewhere in the middle of the affordability spectrum.

But what about the people who, at one extreme of the affordability spectrum are struggling with debt and at the other have income surplus to their current lifestyle requirements, which should be effectively invested and managed?

This summer we prioritised the development of The Big View, a fintech tool powered by CaaS, which empowers people with debt issues, by providing them with access to their own data. The pilot scheme was launched with the Big Issue Invest and Advice Direct Scotland (ADS) in June. Since then any client who requests a Big View analysis has had the opportunity to get an in-depth, 360-degree view of their finances and to work with ADS advisers to interpret the findings and develop highly individualised solutions.

And in the last few weeks, we have had a team working on CaaS for Wealth, a tool designed to help Asset Managers provide the best possible service for their customers. Using the functionality of the CaaS transactional categorisation powerhouse to conduct a wealth assessment, CaaS for Wealth will not only report on exactly what and when a customer spends but will also use its trained engine to identify risk, patterns, behaviours and appetites.

We’re talking to forward thinking asset management companies just now and working hard to bring this product to market. Another revolution is on the way.

We believe that no-one is average, so an affordability product can never be one size fits all. People are somewhere on an affordability spectrum so that’s where our financial affordability solutions haveto be too.