FinTech Scotland has launched the Financial Regulation Innovation Lab (FRIL) – an initiative aiming to change the shape and the future financial regulation in the UK.
FRIL should also help with employment creation and business opportunities, according to a statement from the industry body.
In partnership with the University of Strathclyde and University of Glasgow, FRIL will deliver new research, led by and actionable for the financial sector, to help advance understanding and adoption of new and emerging technologies.
The lab seeks to deliver one of the strategic recommendations laid out in the FinTech Research & Innovation Roadmap, launched in March 2022, and aligns with the recently announced UK innovation initiative – the Centre for Finance, Innovation and Technology – formed in response to the Kalifa Review.
It will engage participants in industry-led innovation challenge calls, integrate academic research with an industry-relevant agenda, design and implement a skills programme, and facilitate knowledge exchange through workshops, roundtables, conferences and trade missions.
“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,” said Nicola Anderson, chief executive of FinTech Scotland. “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.”
Eleanor Shaw, head of the Adam Smith Business School, 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.“
The research will cover various aspects of financial regulation, including the explainable applications of artificial intelligence for ESG risk management, using automation to combat money laundering and synthetic data for regulation innovation.
FRIL, which is specifically funded by the Glasgow City Region Innovation Accelerator programme, will work with industry participants – including established financial institutions, the fintech community, academics, voluntary organisations and regulators – with the first four industry-led innovation calls to be issued in conjunction with lab.