The Scottish finance industry may be heading into troubled waters as it moves marginally to adopt next-generation finance technologies.
The Banking and fintech sectors are increasingly moving towards the use of Blockchain technology. Many banking and financial institutions from across the world have invested heavily in the research and development of distributed ledger technology for their operations.
As other countries are almost midway towards the implementation of new-age technologies into their economy and financial systems, Scotland has just woken up to realize the gravity of its situation. The Scottish country is in a perilous position, thanks to slow tech adoption and other geopolitical developments.
According to Strathclyde Business School, Scotland stands to lose over 14,000 jobs in the next ten years if the country continues to work on improving the fintech sector at a snail’s pace. It is not too late as Strathclyde suggests, even if Scotland accelerates the development of fintech, including blockchain applications, the country stands to gain 15,000 new jobs in a decade’s time.
Scotland in the Time of Brexit
Being part of the UK, Scotland’s economy is closely knitted with that of Great Britain. Due to the same reason, the recent Brexit vote may have far reaching consequences on the Scottish economy. Following Brexit, there are reports of the European financial capital gradually shifting from London to Berlin.
Scotland’s Fintech Strategy Group has created a 5-year plan for innovative financial technology. Daniel Broby, the director of the Centre for Financial Regulation and Innovation at Strathclyde stresses upon the importance of moving fast, for even 5 years may be too long. He lists out a 4-point proposal to ensure the future of Scotland’s fintech industry. His proposal includes,
“–The adoption of a coordinated plan for the incumbent, challenger financial companies, start-ups, Universities, incubators and the Scottish Parliament.
–The establishment and expansion of a big data support facility for the financial sector, the installation of more dark fiber connecting its financial centers and the integration of timing and other digital security measures.
–The establishment and the financial support for a Scottish-backed cryptocurrency.
–Creating a fund to invest in start-up Fintech companies, thereby giving them access to capital.”
ScotCoin for the Scots
There are also talks among certain quarters regarding the revival of Scottish Referendum. With Brexit, Scotland intends to break-free from the United Kingdom and maintain its foothold in the European Union. In such case, the use of Bitcoin-like digital currencies as a replacement for Pound Sterling is proposed. Either way, Scotland will have to work on improving its fintech sector meet the industry’s changing demands.