Through collaboration and cutting-edge technology, FRIL is shaping the future of financial regulation - driving economic growth, creating jobs, and ensuring fairer financial decision-making for all.
A Centre of Excellence for Financial Regulation Innovation
The Centre of Innovation for Financial Regulation in the Glasgow City Region has established a collaborative hub dedicated to advancing financial regulation. Recognising the UK’s significant role in Financial Services, this initiative leverages new technologies to enhance regulatory efficiency, revolutionise risk management, and shape the future of financial regulation.
With £3.4 million in funding from the Innovation Accelerator programme, the University of Strathclyde and the University of Glasgow, in partnership and led by FinTech Scotland, have developed an initiative that is modelling a 6:1 return on public investment. This success has been driven by commitments to creating 119 high-value FinTech jobs over the next three years and substantial in-kind contributions from Financial Services partners.
The Innovate UK funding enabled the creation of the Financial Regulation Innovation Lab (FRIL), an industry-led innovation accelerator focused on promoting economic growth, job creation, productivity, and enhanced innovation capabilities within the FinTech and Financial Services sectors. Delivered through a programme of groundbreaking Innovation Challenges, Actionable Research, Skills & Education, and Knowledge Exchange, FRIL is driving transformative change in financial regulation.
Driving Innovation in Financial Regulation
FRIL’s mission is to revolutionise financial regulation by addressing key themes that foster responsible innovation:
- Simplifying Compliance through AI and Emerging Technologies
- Shaping the Future of ESG in Financial Services
- Enhancing Consumer Duty with a focus on financial inclusion
- Addressing Financial Crime through advanced regulatory solutions
As part of FRIL’s Actionable Research workstream, academics have explored how companies and regulators can better plan, implement, and scale innovation in financial regulation and compliance. Alongside dedicated training initiatives, this research is driving productivity and employment growth as FinTech and Financial Services become more embedded in the Glasgow City Region.
FRIL research has also investigated biases in AI models used by financial institutions for loan approvals, credit limits, and insurance pricing – where unfair outcomes can lead to discrimination. Through its research, FRIL has developed frameworks to assess AI decision-making fairness, identify biases, and implement corrective measures. By applying this methodology to mortgage data, FRIL is helping demonstrate the possibility of fairer financial decision-making, benefiting both businesses and consumers while reducing discrimination risks.
Innovation and Impact
FRIL’s industry-driven agenda has delivered substantial impact:
- 25 Financial Institutions actively leading and contributing to FRIL’s innovation strategy
- 130 Global FinTechs applying to address industry challenges through FRIL’s Innovation Call series
- 72 FinTech SMEs accelerating business solutions through FRIL’s programme
- 18 diverse FinTech SMEs awarded up to £50,000 grants to develop solutions in collaboration with Financial Services industry mentors
- 119 high-value FinTech jobs projected for Glasgow and Scotland’s economy over the next three years
- 22 White Papers published on AI regulation, ESG reporting, financial crime prevention, and AI ethics by the Universities of Strathclyde and Glasgow
- 10 Academic Courses developed to upskill and reskill the Financial Services sector and FinTech community in critical regulatory areas, including AI, ESG, and Climate Finance
- 6:1 modelling return on public investment
Regional Collaboration
FRIL has spearheaded UK-wide collaboration, partnering with SuperTech West Midlands and the Greater Manchester Combined Authority on its third and fourth Innovation Calls. These initiatives brought together a number of diverse innovative FinTechs and high-profile Financial Services partners to develop solutions for Consumer Duty and Financial Crime, driving improved customer outcomes and broader societal impact.
Conclusion
The Centre of Innovation for Financial Regulation has demonstrated significant returns on investment, fostering economic growth, job creation, and innovation in Financial Services. Pioneering advancements in AI regulation, financial inclusion, and ESG compliance to help position the Glasgow City Region as a global leader in responsible financial regulatory innovation.