FINTECH in Scotland: building a digital future for the financial sector

Daniel Broby, Tatja Karkkainen

Research output: Contribution to conferencePaper

Abstract

Financial technology (Fintech) is developing rapidly, utilizing software and programming code in innovative ways. It is driving efficiency up and costs down. The digitalization of transactions is now a cross disciplinary science that looks set to disintermediate banking. The adoption of its new method represents both a big opportunity and a big threat to the financial sector. This paper set outs how the sector is changing and what needs to be done for Scotland to capitalize on it. In particular, we present the results of both a direct and indirect impact analysis on two policy recommendation scenarios, inertia or the one in which Scotland becomes a digital hub. In the inertia scenario Scotland drops behind in the adoption of Fintech. We propose that, to avoid this, certain policy recommendations are adopted to foster the right conditions for the best case scenario. Our analysis shows the economic impact of a proactive approach to Fintech could be substantial and the infrastructure spend to achieve it minimal by comparison.

Conference

ConferenceFuture of Fintech
Abbreviated titleCeFRI
CountryUnited Kingdom
CityGlasgow
Period2/09/162/09/16

Fingerprint

Economics
Scenarios
Financial sector
Scotland
Costs
Inertia
Banking
Hub
Software
Threat
Economic impact
Programming
Impact analysis

Keywords

  • fintech
  • crypto-currency
  • blockchain
  • digital transfer
  • financial services
  • Scotland

Cite this

Broby, D., & Karkkainen , T. (2016). FINTECH in Scotland: building a digital future for the financial sector. 1-30. Paper presented at Future of Fintech, Glasgow, United Kingdom.
Broby, Daniel ; Karkkainen , Tatja . / FINTECH in Scotland : building a digital future for the financial sector. Paper presented at Future of Fintech, Glasgow, United Kingdom.30 p.
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Broby, D & Karkkainen , T 2016, 'FINTECH in Scotland: building a digital future for the financial sector' Paper presented at Future of Fintech, Glasgow, United Kingdom, 2/09/16 - 2/09/16, pp. 1-30.

FINTECH in Scotland : building a digital future for the financial sector. / Broby, Daniel; Karkkainen , Tatja .

2016. 1-30 Paper presented at Future of Fintech, Glasgow, United Kingdom.

Research output: Contribution to conferencePaper

TY - CONF

T1 - FINTECH in Scotland

T2 - building a digital future for the financial sector

AU - Broby, Daniel

AU - Karkkainen , Tatja

PY - 2016/9/2

Y1 - 2016/9/2

N2 - Financial technology (Fintech) is developing rapidly, utilizing software and programming code in innovative ways. It is driving efficiency up and costs down. The digitalization of transactions is now a cross disciplinary science that looks set to disintermediate banking. The adoption of its new method represents both a big opportunity and a big threat to the financial sector. This paper set outs how the sector is changing and what needs to be done for Scotland to capitalize on it. In particular, we present the results of both a direct and indirect impact analysis on two policy recommendation scenarios, inertia or the one in which Scotland becomes a digital hub. In the inertia scenario Scotland drops behind in the adoption of Fintech. We propose that, to avoid this, certain policy recommendations are adopted to foster the right conditions for the best case scenario. Our analysis shows the economic impact of a proactive approach to Fintech could be substantial and the infrastructure spend to achieve it minimal by comparison.

AB - Financial technology (Fintech) is developing rapidly, utilizing software and programming code in innovative ways. It is driving efficiency up and costs down. The digitalization of transactions is now a cross disciplinary science that looks set to disintermediate banking. The adoption of its new method represents both a big opportunity and a big threat to the financial sector. This paper set outs how the sector is changing and what needs to be done for Scotland to capitalize on it. In particular, we present the results of both a direct and indirect impact analysis on two policy recommendation scenarios, inertia or the one in which Scotland becomes a digital hub. In the inertia scenario Scotland drops behind in the adoption of Fintech. We propose that, to avoid this, certain policy recommendations are adopted to foster the right conditions for the best case scenario. Our analysis shows the economic impact of a proactive approach to Fintech could be substantial and the infrastructure spend to achieve it minimal by comparison.

KW - fintech

KW - crypto-currency

KW - blockchain

KW - digital transfer

KW - financial services

KW - Scotland

UR - https://www.sbs.strath.ac.uk

M3 - Paper

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EP - 30

ER -

Broby D, Karkkainen T. FINTECH in Scotland: building a digital future for the financial sector. 2016. Paper presented at Future of Fintech, Glasgow, United Kingdom.