FinTech Scotland launches financial regulation lab

Fintech Scotland CEO Nicola Anderson

FinTech Scotland has announced the launch of the Financial Regulation Innovation Lab (FRIL), which it calls “a dynamic initiative set to revolutionise and shape the future regulatory landscapes in the UK and around the globe.”

In partnership with the University of Strathclyde and University of Glasgow, FinTech Scotland said FRIL “will deliver a wide-ranging, ambitious research agenda, led by and actionable for the financial sector, to help advance understanding and adoption of new and emerging technologies.”

The research will cover various aspects of financial regulation, including the following areas:

  • Explainable AI Applications for ESG Risk Management
  • Simplifying ESG Regulation Compliance through Explainable Intelligent Automation
  • Using Automation and AI to Combat Money Laundering
  • Synthetic Data for Financial Regulation Innovation
  • Generative AI for Improved ESG Reporting and Monitoring in Financial Services

FRIL, funded by the Glasgow City Region Innovation Accelerator programme — led by Innovate UK on behalf of UK Research and Innovation — will work with industry participants, including large established financial institutions, the Fintech community, academics, voluntary organisations and regulators across the UK.

The first four industry-led Innovation Calls to be issued in conjunction with Lab will cover four topical areas:

  • AI and compliance: Utilising emerging technologies to simplify compliance process and monitoring.
  • Consumer Duty: Supporting consumer duty obligations and enhancing financial inclusion outcomes.
  • Financial Crime: Addressing future challenges of financial crime.
  • ESG: Meeting new regulatory requirements, leveraging new data and new technologies.

FinTech Scotland CEO Nicola Anderson said: “FinTech Scotland is uniquely positioned within the Scottish fintech industry to lead such an initiative as it will work to inspire collaborators across Scotland, the UK and globally, enabling those around the world to see Glasgow’s financial services capabilities.

“Bringing the fintech community of industry, academics and regulators together to explore, test and experiment with new technologies is an important part of our mission.”

Professor David Hillier, Associate Principal and Executive Dean of the University of Strathclyde Business School, said: “The University of Strathclyde is delighted to partner with Fintech Scotland and the University of Glasgow to deliver this critical initiative.

“We have significant capabilities across the university in emerging technologies including AI, space and quantum, which we look forward to leveraging through FRIL.

“We look forward to continuing our work with industry, policy makers, regulators and innovative SME’s to drive actionable solutions and deliver on FRILs ambitious agenda.”

Professor Eleanor Shaw, Head of the Adam Smith Business School, University of Glasgow, said: “The Adam Smith Business School is very pleased to be a founding partner alongside our colleagues in Fintech Scotland and the University of Strathclyde to deliver FRIL.

“The opportunity to transform the regulatory landscape is remarkable and we are excited to work with partners across all sectors to deliver a collaborative centre of excellence for cutting edge developments in financial regulation.”