Fintech is an industry that can be a blessing and a curse. Albeit it is evident for everyone to see the financial sector is in dire need of innovation, Fintech startups present stiff competition as well. So much even that Scotland will lose out on thousands of new jobs unless they embrace the Fintech revolution to the fullest. An interesting scenario that will require immediate action.
Scotland Can’t Miss Out On This Job Creation Chance
Similarly to any country in the world, financial innovation is a must for Scotland. But things will get very dire in the next decade unless the proper action is taken. Research by academics at Strathclyde Business School predicts the country will lose more than 14,000 jobs unless they embrace the financial tech revolution. Quite a bold statement, but there is some solid evidence to back up these claims.
To put this into perspective, the Fintech sector is expected to create 15,000 new jobs in Scotland over the next ten years. While a portion of those new openings will always be filled regardless of embracing new technologies, most of them will not. Losing out on £635m in wages is not an option for a country planning to become an independent nation at some point in the future.
Strathclyde Director of the Centre For Financial Regulation Daniel Broby stated:
“It is critical that we create the right conditions to enable companies to develop fintech faster, if Scotland’s financial sector is to remain globally competitive. The technology exists. Either Scottish financial institutions adopt it and thrive, or they ignore it at their peril.”
Securing the future of Scotland as a Fintech hub will require some serious changes. First of all, Broby suggests establishing a big data support facility for the financial sector. Additionally, he also proposes to provide financial support for a Scottish-backed cryptocurrency. In doing so, Scotland would not be the only country to explore the option of using their own digital currency. However, they may become the first in the world to actually do so.
For the time being, several options in the Fintech sector are already being explored. The Fintech Strategy Group was established not too long ago, and they are currently mapping out a five-year plan. Blockchain technology will undoubtedly be on the list of technologies worth exploring in the future.
If Scotland wants to capitalise on this “wave of disruption”, they will have to act fast. Cutting-edge financial technology solutions are very differently from new tools and services being deployed by Scottish banks right now. The time is now to seize the moment and become a leading country in the Fintech race.
Header image courtesy of Shutterstock