FINTECH in Scotland: Building a Digital Future for the Financial Sector

The Future of Fintech Supported by International Financial Services District (IFSD) The Technology Innovation Centre, Glasgow Date: 2nd September 2016

30 Pages Posted: 20 Sep 2016

See all articles by Daniel Broby

Daniel Broby

University of Strathclyde - Department of Accounting and Finance

Tatja Karkkainen

University of Glasgow

Date Written: September 2, 2016

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.

Keywords: Fintech, Blockchain, distributed ledger, crypto-currency, scottish economy

JEL Classification: A12, C13, E44, E61, G15

Suggested Citation

Broby, Daniel and Karkkainen, Tatja, FINTECH in Scotland: Building a Digital Future for the Financial Sector (September 2, 2016). The Future of Fintech Supported by International Financial Services District (IFSD) The Technology Innovation Centre, Glasgow Date: 2nd September 2016, Available at SSRN: https://ssrn.com/abstract=2839696 or http://dx.doi.org/10.2139/ssrn.2839696

Daniel Broby (Contact Author)

University of Strathclyde - Department of Accounting and Finance ( email )

Curran Building
100 Cathedral Street
Glasgow G4 0LN
United Kingdom

Tatja Karkkainen

University of Glasgow ( email )

No Address Available
United States

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