Glasgow will become the hub of a new centre that uses technology to make financial regulation faster, cheaper, and more effective. Financial regulation keeps the banking and investment systems stable, but it is complex and costly. Current rules often fail to keep pace with new fintech products, leaving gaps that fraudsters exploit and making compliance a burden for firms. This centre aims to close that gap by bringing together industry, regulators, and academics to design regulation that works with technology, not against it. If successful, the centre will produce new regulatory services that improve customers’ financial wellbeing and security. It will develop research that revolutionises risk management and reduces customer harm. It will also train professionals to understand emerging technologies, and create global best practices for tackling financial crime. The result could be a financial system that is safer, simpler, and more inclusive—without the usual lag between innovation and oversight.
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Financial regulation is the cornerstone of a vibrant economy and dynamic society. Effective financial regulation provides a stable financial services ecosystem and successful economy, ensuring the interests of citizens, investors and enterprises are well served, as well as providing economic and social confidence across the nation and internationally. This project will establish a UK and globally recognised Centre for ground-breaking industry innovation in financial regulation, leveraging new technologies and talent that the Glasgow City Region boasts. The Centre for Innovation in Financial Regulation (Centre) will make a positive and lasting economic contribution to the region through high quality job creation, new enterprise formation and growth, and substantial inward investment, whilst also leading on social outcomes, including inclusive regional growth and skills development. This will be achieved by establishing a demand-led innovation Centre, delivering a series of practical innovation challenges alongside research using new technologies and data insights to enable cost-effective financial regulation. The Centre will lead industry initiatives with domestic and international networks of financial industry practitioners, regulators, and academics, with the City of Glasgow at its heart. In turn this will accelerate fintech innovations, utilising the strength of Glasgow City as a recognised financial hub and vibrant fintech environment, whilst leveraging the UK's financial, regulatory and innovation expertise. The strategic outcomes will provide innovative and impactful solutions to the regulation obligations of financial services and fintech firms locally, as well as UK wide, driving value for people by reducing the complexity in finance, solutions to help combat fraud, and facilitating innovative responses to consumers' financial wellbeing. For example, the Centre will enable Glasgow and the UK to progress and globally lead the recognised fintech opportunity with financial regulation in delivering : **1\.** **New technology-enabled regulatory services**: Industry-led creation of intelligent financial innovations addressing regulatory requirements to provide customers with **enhanced financial wellbeing and security** **2\.** **New research in financial risk management**: Programme of actionable research that informs new approaches to monitoring, identifying, and managing risks, and **revolutionising risk management and reducing customer harm** **3\.** **Skills and expertise in regulation innovation**: The development of regulatory and compliance professionals in building understanding of emerging technologies and their application in financial regulation. **4\. Global best practice regulation innovation:** Developing a programme of globally recognised best practice excellence, bringing together industry practitioners, regulators, academics, and pipeline talent to address risks, **such as financial crime**, that can only be achieved through focused cross-sector collaboration.
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