17 November 2017
visit www.avoka.com

Scotland's financial future threatened by growth of fintech

07 September 2016  |  6259 views  |  0 Scotand

The Scottish financial sector faces a loss of over 14,000 jobs in the next decade if it fails to embrace the the current technological revolution in banking and insurance.

Academics at Strathclyde Business School say financial technology has the potential to create nearly 15,000 jobs in Scotland over 10 years. But failing to adopt leading-edge technologies would have the opposite effect, with a loss of just over 14,000 jobs - or £635 million in wages.

Daniel Broby, director of the Centre for Financial Regulation and Innovation at Strathclyde, says: "It is critical that we create the right conditions to enable companies to develop fintech faster, if Scotland’s financial sector is to remain globally competitive. The technology exists. Either Scottish financial institutions adopt it and thrive, or they ignore it at their peril.”

Broby advocates a number of proposals to ensure Sootland's future as a centre for financial services, including:
  • The adoption of a co-ordinated plan for incumbent, challenger financial companies, start-ups, Universities, incubators and the Scottish Parliament
  • The establishment and expansion of a big data support facility for the financial sector, the installation of more dark fibre connecting its financial centres and the integration of timing and other digital security measures
  • The establishment and the financial support for a Scottish backed cryptocurrency
  • Creating a fund to invest in start-up Fintech companies, thereby giving them access to capital.

Scottish Financial Enterprise has already taken the bull by the horns, convening a Fintech Strategy group to map out a five-year plan to look at innovative new technologies in financial services and their potential impact on, and opportunities for, the industry in Scotland

Broby warns that the industry will need to move fast if it is to capitalse on the coming wave of disruption: “In Scottish bank and fund management operations, fintech is already used. This is, however, largely developed in-house and as such is not cutting edge. The gradual trend has been for traditional banks to move to off-the-shelf solutions and to leave the in-house developed legacy systems.

“We argue that this should be accelerated. There’s potentially a huge opportunity for Scotland but we need to seize it.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

RBS scraps W&G carve out; writes off £345 million spend on spin off

RBS scraps W&G carve out; writes off £345 million spend on spin off

05 August 2016  |  10301 views  |  0 comments | 9 tweets | 10 linkedin
RBS takes the axe to back office and IT staff

RBS takes the axe to back office and IT staff

21 June 2016  |  6429 views  |  0 comments | 9 tweets | 7 linkedin
Royal Bank of Scotland drops the axe on more branches/staff

Royal Bank of Scotland drops the axe on more branches/staff

12 May 2016  |  5983 views  |  0 comments | 4 tweets | 2 linkedin
Scotland to map out five-year strategy for fintech growth

Scotland to map out five-year strategy for fintech growth

06 May 2016  |  10099 views  |  0 comments | 12 tweets | 12 linkedin
RBS says IT issues could make it miss Williams & Glyn branch sale deadline

RBS says IT issues could make it miss Williams & Glyn branch sale deadline

28 April 2016  |  6735 views  |  3 comments | 2 tweets | 2 linkedin
RBS to cut 550 jobs in preparation for robot revolution

RBS to cut 550 jobs in preparation for robot revolution

14 March 2016  |  10005 views  |  3 comments | 23 tweets | 17 linkedin
RBS creates 'Open Experience' centre at Scottish HQ

RBS creates 'Open Experience' centre at Scottish HQ

09 March 2016  |  7125 views  |  0 comments | 10 tweets | 5 linkedin
Meet Luvo, Royal Bank of Scotland's new virtual assistant

Meet Luvo, Royal Bank of Scotland's new virtual assistant

04 March 2016  |  10869 views  |  0 comments | 14 tweets | 20 linkedin
RBS prepares to open executive wing to startups

RBS prepares to open executive wing to startups

11 February 2016  |  7928 views  |  1 comments | 16 tweets | 13 linkedin
RBS selects 'eco-innovation' finalists; aims to open carbon neutral branch

RBS selects 'eco-innovation' finalists; aims to open carbon neutral branch

09 November 2015  |  5440 views  |  0 comments | 4 tweets | 4 linkedin
Royal Bank of Scotland to connect all staff to Facebook at Work

Royal Bank of Scotland to connect all staff to Facebook at Work

26 October 2015  |  7820 views  |  0 comments | 9 tweets | 13 linkedin
Nanotechnology and beehives to the fore as RBS refurbishes HQ

Nanotechnology and beehives to the fore as RBS refurbishes HQ

02 October 2015  |  5860 views  |  0 comments | 3 tweets | 5 linkedin
RBS pledges to boost resilience spend after latest IT failure

RBS pledges to boost resilience spend after latest IT failure

19 June 2015  |  15183 views  |  5 comments | 20 tweets | 8 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.asiapacificwealthreport.comvisit www.aciworldwide.com

Top topics

Most viewed Most shared
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
11239 views comments | 15 tweets | 28 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
9508 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
8258 views comments | 11 tweets | 35 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
7253 views comments | 26 tweets | 37 linkedin
Visa bids to bring contactless transit payments to the worldVisa bids to bring contactless transit pay...
7131 views comments | 16 tweets | 29 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job