Scotland's fintech scene can build on universities production and commercialisation of technology, says expert

Yvonne Dunn of Pinsent Masons, the law firm behind Out-Law.com, was commenting after a new fintech strategy group was set up by a financial services industry body in Scotland. Dunn is a member of the group, which has been established by Scottish Financial Enterprise.

"This is an exciting and important development for Scotland," Dunn said. "Given the strength of the financial services sector in Scotland and the strong reputation of our universities for producing and commercialising technology, it seems natural that Scotland should expand its influence in fintech. Key to this is focusing on specific areas where Scotland can have a distinctive role and/or brand, and the strategy group will help to develop that."

The new group will be chaired by Royal Bank of Scotland’s head of design Louise Smith and will include representation from more than 30 people from businesses with expertise across "financial technology disciplines", the SFE said. It will also include representatives from government and higher education bodies, it said.

The group intend to look ahead to what new technologies will emerge in financial services over the next five years and to assess what the impact will be on the industry in Scotland as well as what opportunities those technologies will present. In addition, the group intends to monitor global developments on issues such as big data and blockchain, and take steps to ensure the industry is prepared for future employment and skills needs, the SFE said.

The group plans to bring its findings together with other industry and government initiatives to outline a "five year strategy for success" and also "identify the conditions that need to be in place for financial services in Scotland to compete effectively in the global marketplace and continue to grow", the SFE said.

SFE chief executive Graeme Jones said that Scotland's "financial services cluster" is second only to London's in the UK and that it would provide "a critical mass to build on with the new developments created by fintech". 

"The diverse global economy which financial services in Scotland serves, provides opportunities to work across different industries collaboratively and develop a shared strategic approach," Jones said. "SFE’s FinTech Strategy Group brings together those who are leading technological change in Scotland’s financial services industry and key policy makers, to develop a strategy which seeks out opportunities so we stay ahead of the game in this fast paced environment."

"Many of our universities are at the cutting edge of these developments and producing highly skilled graduates, but it is important we work together and share our knowledge of this rapidly changing field. Working together we can identify the emerging areas of demand and get the right skills in place at the right time," Jones said.

Louise Smith said: "The use of innovative technologies in financial services may have started in the world of start-ups and disrupters but it is now very much part of mainstream financial services and getting bigger by the day. It brings with it opportunities and challenges for the industry but ultimately, and most importantly, it brings greater efficiency for customers. I am delighted to be chairing SFE’s Fintech Strategy Group, there is a wealth of expertise among its members and this is an exciting time to bring people together and map out a strategy for the next five years."