FinTech Scotland: Building on Scotland's Banking Heritage
Celebrating Robert Burns and the Scottish FinTech Scene
Being a Scot who wandered across an ocean and somehow made his home on the other side, this is a time of year when my thoughts turn to the auld country. January 25th is Burns’ Night – an annual celebration of Scotland’s national poet Robert Burns, and a good excuse to drink fine Scotch. Tradition requires Burns' poetry and a whisky toast before feasting on haggis.
This year found me thinking about the history of banking in Scotland. Despite a small population of just over 5 million people, Scotland has a famous history of economics, finance, and banking. In 1776, Scottish economist Adam Smith published his blockbuster, “The Wealth of Nations.” (Of course, this was the same year the United States adopted the slightly less famous Declaration of Independence).
A few decades ago, as I was growing up in the Glasgow commuter belt, Scottish banking was dominated by the big three (in relative terms anyway): The Royal Bank of Scotland (RBS), Bank of Scotland, and Clydesdale Bank – all of which print their own bank notes, by the way. The fortunes of these banks have waxed and waned over the years. Lloyds Bank ultimately acquired Bank of Scotland, Clydesdale is now part of Virgin Money, and the once-mighty RBS is a business of NatWest.
However, Scottish banking (and specifically banking technology) is going through a resurgence – and it is not just from local banks. Back in 2000, Morgan Stanley opened a Glasgow office, which has now expanded to be one of nine Global-In House Centers[1] and employs some 1,600 people – many in technology and innovation. JP Morgan has had a presence in Glasgow for about 25 years and opened a new technology center in Glasgow in 2024. The bank employs over 2,500 people in Glasgow alone, but over 4,000 across Scotland.[2] Tech firm, NCR, has been a major employer in Dundee for over 75 years (well before the advent of fintech)!
JP Morgan’s New Office in Glasgow, Scotland
Source: JP Morgan
FinTech Scotland: Growing an Ecosystem of Innovation
A new fintech ecosystem is also flourishing. However, it isn’t just the presence of global powerhouses and the traditional Scottish bank brands – although they clearly make a major contribution. FinTech Scotland plays a pivotal role in fostering collaboration among startups, established financial institutions, and academic institutions to create a vibrant ecosystem that drives technological advancement in financial services. The Scottish government recognized the importance of fintech as a driver of economic growth, and implemented supportive policies aimed at nurturing the sector - including being a driving force behind the creation of FinTech Scotland. Initiatives such as the FinTech Scotland Strategy and the establishment of the Fintech Innovation Lab exemplify the government’s support for fintech development. These efforts not only enhance Scotland's reputation as a fintech hub but also attract investment and talent from around the world.
Today the Scottish fintech landscape comprises a diverse range of companies that are not only focused on traditional banking solutions, but are also pioneering advancements in regtech, insurtech, and payment solutions. By bringing together stakeholders from government, academia, and the private sector, FinTech Scotland fosters an environment where ideas can flourish. Education and skills development are also critical components to help a fintech ecosystem grow. It encourages me to see top univerisities in Edinburgh, Glasgow, and Dundee offer specialized programs in fintech, data science, and digital finance.
Over 11,000 people are now employed in the FinTech Scotland Cluster. This collaborative approach is essential for driving innovation, as it enables fintech companies to leverage the expertise and resources of established institutions while also benefiting from the agility and creativity of startups. The triangulation of education, fintech businesses, and bank engagement should ensure the next generation of financial technology leaders are well-equipped to drive future innovations.
Slàinte Mhath – cheers!
[1]How Global In-House Centers Became Engines of Innovation, Morgan Stanley 2020, accessed January 2025
[2]JP Morgan Chase opens the doors of its new Glasgow office, JP Morgan Chase April 2024, accessed January 2025