The achievements of Scotland’s fintech businesses in supporting the economy, and their potential to meet social challenges, were the key themes of Cabinet Secretary for Finance and the Economy Kate Forbes speech at Fintech Summit 2021.

Giving the day’s opening address, she celebrated Scotland’s achievements, and noted that, as a small country with a pioneering and innovative spirit, its fintech and financial industry have the potential to work together.

“Over the last 18 months in particular we have seen not just within the tech community but further beyond that the great potential of tech to solve so many of our problems,” Forbes said. “We’ve seen the immense power of digital technology in the response of businesses to the pandemic as businesses have adapted and innovated at an unprecedented pace and scale.”

Forbes outlined how her role, and the role of the Scottish Government, is to support the country’s financial ecosystem, to translate its expertise and communicate it to the outside world. She noted that the discourse surrounding pandemic is paving the way for exciting innovations as the world emerges from the pandemic.

“We’ve seen over the last 18 months the way in which the fintech community was right beside businesses and helping them find solutions and supporting them during a tumultuous time,” she said.

As an example of a Scottish fintech success, Forbes cited how the number of fintech startups grew by over 50% since the onset of the coronavirus pandemic last year, jumping to 181, from 119 in March 2020.

“A fantastic achievement,” she called it, “perhaps doubly so in light of the challenges that we are facing.”

The pandemic has posed challenges for every sector of society. As such, a combined and cooperative solution is needed. Fintechs are a key part of these, with their products and services having kept businesses and people working and relaxing over Covid-19.

“As home to a thriving tech sector, this growing cohort of fintech companies I hope to see continuing to export their solutions, not just to Scottish companies but to business around the world,” Forbes said.

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As such, this cooperative approach extends beyond borders. Digital technology has already helped break down barriers – remote working has opened up new employment possibilities outside traditional hubs like London. But this cooperative and global approach brings challenges as well.

“International competition is growing,” Forbes said, “and the question for Scotland is how do we maintain our advantage in financial services and fintech in an increasingly competitive and globalised world?”

She praised the model laid out over FinTech Scotland’s 10-year history that sees different economic players can work towards a shared goal. With the world looking to move past Covid-19, Scotland is well positioned to export its expertise, its ideas, and innovations.

“Some of the challenges, whether it’s the climate emergency, whether it’s the changing nature of our economies, whether it’s changing market behaviours, the world, countries, governments, other businesses are grappling with these problems, which create huge opportunities, huge potential for us to find solutions here in Scotland because we’ve got that collaboration.”