FinTech Scotland receives UK funding for regulatory innovation

FinTech Scotland has secured support from the UK Government to accelerate innovation in Scotland’s fintech cluster. The funds will promote research and innovation within financial regulation. The FinTech Scotland initiative, in collaboration with industry partners, and with Strathclyde and Glasgow universities, includes the creation of a new collaborative center of research excellence, called The Financial Regulation Innovation Lab.

The pioneering collaborative lab will focus on harnessing new technologies to accelerate efficiency, revolutionize risk management and shape future regulatory developments, accelerating the UK’s ability to seize competitive advantage in the future of financial regulation and fintech innovation. The new funding is part of a wider successful offer by Glasgow City Region included in the UK Government’s initiative to accelerate the growth of ‘high potential innovation clusters’ in Glasgow, Greater Manchester and the West Midlands.

All the projects in the Innovation Accelerator program will start in the spring, following Innovate UK’s normal due diligence. The funding award to fintech in Glasgow demonstrates the national commitment to driving fintech innovation across the UK. The lab enables FinTech Scotland to deliver one of the strategic recommendations in the FinTech Research & Innovation Roadmap, launched in March 2022, and is in line with the recently announced UK innovation initiative, CFIT, formed in response to the HM Treasury FinTech Sector Review.

FinTech Scotland will work across industry leading the development of the lab, with initial actions focused on a sandbox to test and promote fintech innovations that meet industry demand, a facility to develop new businesses with an accelerated path to commercial success, industry-driven academic research, promoting new deployment of technology in finance, a technology-focused skills program for risk and regulatory professionals, and researched, data-driven contributions that help advance financial regulatory policy.

Nicola Anderson, CEO of FinTech Scotlandcommented: “I am delighted to see the UK Government’s commitment and recognition of the high growth potential of fintech innovation in Glasgow. The Innovation Accelerator funding will help push this forward. The Financial Regulation Innovation Lab is a ground-breaking initiative. It brings together industry partners, fintech entrepreneurs, universities and regulators to revolutionize the future of financial regulation and risk management through technology and data. The results will shape the jobs of the future and drive our fintech ambition, here in Scotland and across the UK.”

Charlotte Crosswell OBE, Chair of the Center of Finance Innovation, and Technology (CFIT) commented: “The development of the Financial Regulation Innovation Lab is an exciting opportunity both for Glasgow and for the UK. We have significant potential across the UK to drive fintech innovation and realize our full fintech potential. Drawing on our regional strengths and bringing experts across the finance and technology ecosystem is key. This is our mission at CFIT and we are delighted to support FinTech Scotland as they continue to demonstrate their impact, identify opportunities for fintech growth and work together to drive innovation acceleration across the UK.”