Expanding Horizons for Fintech in Scotland
Nicola Anderson is CEO at Fintech Scotland. She is supporting innovation, people development, strategy, change management, risk mitigation and regulation. She has been a regulator herself:
Babu Nair: Can you speak about the fintech ecosystem in Scotland? What kind of companies are associated with this ecosystem?
Nicola Anderson: Fintech Scotland is a healthy collaboration of establishments of various industries, both public and private, and also academic institutions. The broad nature of these companies ensures that there are healthy growth and impactful collaboration. Fintech has the positive opportunity to drive the change in the financial services sector. Our inclusive cluster approach enables us to see that we take along as many players as possible.
The fintech SME community has grown to 154 in the last 3 years. The real strength lies in the depth of subjects. We have lots of companies from payments, data analytics, open banking, digital currency, regtech, and so forth. The members of the community share lessons and support each other as they develop. The fintech scene in Scotland is vibrant.
What is the regulatory scenario for fintechs in Scotland?
Luckily, the financial regulatory authority in UK and Scotland in particular has been very supportive of the changes. The Financial Conduct Authority (FCA) encourages innovations in the financial sector. It has established an Innovation Sandbox, which is now updated to version 7. This helps the government to be upbeat about the changes happening in the field of fintech. Continuous reviews of the policies take place. It is also beneficial for the new entrants to understand the policies.
FCA has been at the forefront of driving the regulatory changes. The innovative changes in the financial sector are also being monitored by FCA. The progress has been positive for the market. With the regulatory authority at the forefront, it represents the vibrancy in the UK, and in particular in Scotland.
What is the i nvestment situation in Scotland? What changes has the pandemic brought with it?
There has been an active investment in the UK market when it comes to fintechs; the companies which comply with the regulations see good growth. A lot of activity is happening in the payments and digital currency sector.
We have seen $4.1 billion worth of investments in the last year. It’s been interesting to see investments have risen. This situation has just accelerated the need for digital services in the financial sector.
How is the market in the UK adjusting to the fintech ecosystem in Europe? What are the opportunities for players from other markets?
Scottish Development International, Department for Trade in Scotland and Fintech Scotland are working together. We welcome international businesses in Scotland and support the SMEs in the country to look out for international opportunities. The most promising fields are open banking and open finance. In recent times some international businesses have settled down in Scotland. There has been a great deal of learning happening between the local and foreign fintechs.
How are fintech support others who want to set up business in Scotland?
Those who consider Scotland an opportunity can be assured of full support from Scotland Development International. Incentives are being considered for the skills landscape.
How can fintechs find talent in Scotland?
There is no dearth of talent. We have professionals from financial, technological and innovative backgrounds. The universities in Scotland are helping create this talent pool. There are lots of fintech graduate and degree programs being offered in the universities.
Among the vast number of technologies, which are the most promising ones?
Entrepreneurs are coming up with very innovative solutions to vast array of problems. They want to deliver real solutions to the people. In the Scottish Fintech community, it is very prominent that the purpose behind the business is vital. Financial inclusion, payments sector, digital currency are going to see a lot of innovations.