Priya PatelTLDR: Scottish fintech SMEs have seen a significant increase in employment over the past two years, with over 10,500 people now employed across 226 enterprises. This growth has been driven by the rise in fintech SMEs, increased maturity within the community, and the settlement of international businesses in Scotland. FinTech Scotland reports that collaboration with large financial institutions and the presence of fintech innovation labs have also contributed to this growth. Scotland continues to attract international fintech companies, with 38 including Scotland in their development plans. FinTech Scotland plans to support further growth in the sector in 2024, focusing on investment, international connections, and collaborative partnerships.
Scotland’s fintech cluster has seen a 24% increase in jobs within fintech enterprises since FinTech Scotland’s launch six years ago. The growth in employment is attributed to several factors:
- An increased number of fintech SMEs
- A growing maturity across the fintech community
- A continued number of international businesses settling in Scotland
Collaboration with large financial institutions and the presence of fintech innovation labs have also played a significant role in driving employment growth. FinTech Scotland reports that enterprises scaling through collaboration have achieved positive outcomes for customers and highlighted several examples, including Snugg and TSB’s collaboration to improve home energy efficiency for TSB’s customers and Behavioural Finance and Phoenix Group’s support for better retirement outcomes. Other collaborations include GoCodeGreen’s partnership with Lloyds Banking Group around digital sustainability.
Scotland has also attracted 38 international fintechs to include the country in their development plans, showcasing its appeal to SMEs. FinTech Scotland has plans for 2024 to support fintech SMEs in scaling and maintain a focus on investment, international connections, and collaborative partnerships. Nicola Anderson, CEO of FinTech Scotland, stated that the increase in jobs and SMEs is a testament to the commitment of the fintech businesses and all those involved in the FinTech Scotland Cluster, and it spurs them on to continue focusing on growth and supporting Scotland’s ambition as a global fintech leader.
Reactions to the news of the employment growth in Scotland’s fintech sector have been positive. Jane Martin, managing director of innovation and investment at Scottish Enterprise, highlighted that the increase in jobs is a clear indicator of Scotland’s attractiveness to global fintech companies, driven by its talent pool, academic excellence, and well-established financial services sector. Scottish Enterprise looks forward to working with FinTech Scotland and the wider sector to support more companies coming through, achieving scale, and creating new jobs in the future.
