Fintech
EY launches new Fintech Lab in Scotland
EY today announced the launch of its first Scottish FinTech lab, based in Edinburgh.
The lab, which follows EY’s first successful lab in London, is designed to collaborate with start-ups and scale-ups to create innovative solutions to key financial challenges in the UK region, with a particular focus on sustainable finance.
The first batch of start-ups in the new FinTech lab explored the connection between space science data and finance. Following a successful kick-off summit in 2023, FinTech Scotland, EY and Space Scotland, supported by the UK Space Agency, have led a program of activity aimed at deepening understanding between financial services and the space industry.
The program called for proposals for new projects that could provide data to support financial firms’ product development, particularly to help manage climate change. The winning entry came from Environment Systems and Earth Blox, focusing on the use of raw materials.
Earth Blox, a no-code spatial data SaaS, and Environment Systems, an environmental and agricultural data consultancy, have joined forces to demonstrate how the financial services industry can use spatial data to maximize the value of their portfolios from nature-based insights.
The project combined local and global spatial data to identify natural and climate risks for agricultural products such as asparagus, potatoes and soybeans. It demonstrated how companies can capture detailed crop information in individual fields and adapt it to understand potential yield impacts at local, national and global levels.
The solution identifies unsustainable areas for growth and optimal locations for future production, while ensuring compliance with environmental regulations such as the EU Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD).
Located in EY’s Edinburgh headquarters, the new lab is a dynamic workspace designed for testing and learning collaboration, experimentation and rapid prototyping. FinTechs, potential investors, customers, established financial services firms, regulators and other partners based in Edinburgh and across the UK will be able to connect to share information, exchange ideas and develop real solutions to serve markets and customers more effectively.
Sue Dawe, managing partner of financial services at EY Scotland, comments: “We are seeing some very exciting start-up and expansion activity across the UK, and the Scottish FinTech sector is going from strength to strength.
“The new FinTech Lab in Edinburgh will tap into the growing appetite for innovation in the Scottish financial services sector and develop the talent we already have in our market. With the theme “FinTech for good” at the forefront, our new lab’s focus on sustainable finance will help companies respond to a key industrial and social challenge. The launch of the lab in Edinburgh demonstrates our commitment to the growth of FinTech and, as a strategic partner of FinTech Scotland, we will continue to work together to help Scotland become one of the world’s leading FinTech clusters.”
Nicola Anderson, CEO of FinTech Scotland, said: “The growth of Scottish FinTech embodies the power of collaboration across sectors, sparking innovation that not only fuels new businesses but also drives positive change for our economy and society. We are delighted to welcome the EY Innovation Lab in Edinburgh to the cluster, the lab’s focus areas including financial inclusion and sustainability align strategically with the priorities of the FinTech Scotland Cluster. Together and in collaboration we are ready to drive meaningful change, leveraging technology to create a more inclusive and sustainable financial ecosystem.”
Dr Hina Khan, Executive Director of Space Scotland, comments: “Through strategic collaboration with FinTech Scotland and EY we are delighted to bring the potential of geospatial data to the Scottish financial services sector. By harnessing innovative data and technology across all sectors we expand the overall potential of Scottish businesses. Space Scotland has worked with FinTech Scotland through the UKSA Cluster Development program to increase the use of EO data in the financial services sector. The launch of the EY Lab in Edinburgh with the first cohort of EO data companies developing solutions for the fintech sector is a great outcome of the joint Accelerator programme.”
In December 2022, EY has launched its first FinTech lab in the UK. Since its launch, the London FinTech Lab has led five innovation sprints, connecting FinTechs and established financial services companies.
Chris Woolard, Head of FinTech at EY UK, comments: “FinTech plays a fundamental innovation role for the British market and is a key competitiveness factor on the international scene. We have set ourselves a clear and ambitious growth plan for EY’s FinTech business in the UK and the launch of the new lab in Edinburgh marks a significant step forward. This is the second FinTech lab we have launched in the UK and we look forward to expanding our FinTech growth in the UK this year.”