The innovation challenge, spearheaded by the recently established Financial Regulation Innovation Lab (FRIL) and funded through the UK Government’s Innovation Accelerator programme, focuses on simplifying compliance through the application of AI and emerging tech.

The first in a series of industry-led innovation calls, the initiative has been created to foster confidence in the adoption of emerging technologies into financial services.

This call aims to demonstrate the ability technology could have in meeting global regulatory requirements, setting a new standard for future advancements in the industry.

FinTech Scotland and the financial services firms, in conjunction with Deloitte, are inviting entrepreneurs and innovators to identify and use technologies to address industry compliance challenges.

Launched under the principle of responsible innovation, these calls set the stage for exploration and development of solutions that will yield positive outcomes for the needs of consumers and businesses alike, resulting in an overall economic contribution.

The CEO of FinTech Scotland, Nicola Anderson, said: “We are extremely excited to kick off this inaugural industry innovation challenge.

“Demand-led innovation calls are an important part of the toolkit that the Financial Regulation Innovation Lab will employ to drive positive outcomes.

“It is also an opportunity to bring together financial institutions and innovators, enabling financial institutions to learn collaboratively about ways to improve compliance processes to drive efficiency for the sector and, ultimately, increase consumer protection.”

In partnership with the University of Strathclyde and the University of Glasgow, FRIL aims to leverage expertise in financial services risk and compliance, and combine this with emerging tech to build capabilities that maintain and grow both Scotland and the UK’s position as a leader in financial services regulatory innovation.

Gareth Murphy, chief risk officer at abrdn, also commented: “At abrdn, we’re delighted to join the Financial Regulation Innovation Lab’s inaugural innovation call to action.

“It is essential that we continue to evolve the mix of people, process and technology in all of our activities. We draw on extensive experience in financial services, in Scotland and globally.

“This collaboration is a testament to our commitment to seizing the ongoing opportunities that financial services and innovation present.”

Recommended reading

• FinTech Scotland Launches Financial Regulation Innovation Lab
• FinTech Scotland and Smart Data Foundry Launch Innovation Challenge
• Scots Fintech Employment Sees Huge Two Year Jump

The programme includes three phases: challenge definition, solution design & testing, and final demonstrations.

Applicants are set to receive insights about financial firms through collaboration, a support network, academic expertise, and service design support, and successful companies will receive grant awards up to £50,000 for further development and implementation.

Fintechs and other teams of innovators are invited to join the challenge, with applications open from today (1 February).

The innovation challenge call finale event will take place in April 2024.