A new innovation lab in Glasgow has been launched with the goal of helping shape the future of financial services regulation.
The Financial Regulation Innovation Lab (FRIL), launched in partnership between FinTech Scotland, the University of Glasgow, and the University of Strathclyde will work with the financial services industry to examine technology-based regulatory products and services.
FRIL will collaborate with large established financial institutions, the fintech community, academics, voluntary organizations, and regulators across the UK, and there are hopes that it will help create jobs and new business opportunities.
"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, CEO 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."
Work will cover various aspects of financial regulation, including explainable AI applications for ESG risk management, simplifying ESG regulation compliance through explainable intelligent automation, and using automation and AI to combat money laundering.
In addition, the center will examine the use of synthetic data for financial regulation innovation as well as the use of generative AI to improve ESG reporting and monitoring in financial services.
Planned activities include industry-led innovation challenges aimed at improving education and knowledge exchange through workshops, roundtables, conferences and trade missions.
"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," says Professor Eleanor Shaw, head of the Adam Smith Business School at the University of Glasgow.
The first industry-led Innovation Calls will involve AI and compliance. This will include research into the use of emerging technologies to simplify and streamline compliance and monitoring processes.
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"Once more, FinTech Scotland is taking proactive measures to showcase the effectiveness of how a cluster approach can accelerate the UK’s ability to seize competitive advantage in the future of financial regulation and fintech innovation," said Stephen Ingledew, chair of FinTech Scotland.
"FRIL will allow us to continue to endorse the opportunity from the fintech sector to support growth across the UK economy."
