FinTech Scotland has announced the launch of the Financial Regulation Innovation Lab (FRIL). The project is predicted to shape the regulatory landscape for financial services in the UK as well as around the world. The Lab was created in partnership with the University of Strathclyde and the University of Glasgow and is said to incorporated an “ambitious research agenda” and will seek to advance Fintech.
The Lab is one of the strategic recommendations outlined in the FinTech Research & Innovation Roadmap, launched in March 2022, and aligns with the UK innovation initiative, the Centre for Finance, Innovation, and Technology (CFIT), formed in response to the HM Treasury FinTech Sector Review also called the Kalifa Review.
Nicola Anderson, CEO of FinTech Scotland, said they are uniquely positioned to lead the initiative, which aims to inspire collaborators across the UK and globally.
“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,” said Anderson.
Professor David Hillier, Associate Principal and Executive Dean of the University of Strathclyde Business School, said his school is pleased to partner with FinTech Scotland and the University of Glasgow on the initiative.
“The opportunity to transform the regulatory landscape is remarkable and we are excited to work with partners across all sectors to deliver a collaborative center of excellence for cutting-edge developments in financial regulation,” added Professor Eleanor Shaw, Head of the Adam Smith Business School, University of Glasgow.
Stephen Ingledew OBE, Chair of FinTech Scotland, said they are taking a proactive approach to accelerate the UK’s competitive advantage in the Fintech sector and FRIL boost Fintech across the UK
FinTech Scotland outlined the anticipated research that will be pursued:
- 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 is specifically funded by the Glasgow City Region Innovation Accelerator program (led by Innovate UK on behalf of UK Research and Innovation). 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.
