Eight fintech companies are set to get ‘further funding’ to develop ethical finance products after winning an innovation challenge.

The winners are to advance their tech solutions after responding to a challenge competition organised by the recently launched Financial Regulation Innovation Lab (FRIL) in Glasgow.

FRIL is the first initiative of its kind in the UK aimed at stimulating new products and services in financial tech regulatory markets.

Launched by FinTech Scotland – the cluster management organisation – it works closely with the University of Strathclyde and the University of Glasgow.

The call, announced in June, was titled “Shaping the Future of ESG in Financial Services” and involved 10 industry partners.

Its aim was to tackle critical data and technology challenges to enhance the integration of Environmental, Social, and Governance (ESG) factors in the financial services sector.

Lloyds Banking Group, Morgan Stanley, Barclays, Phoenix Group, abrdn, HSBC, Virgin Money, EY, Sopra Steria, and Equifax all supported the initiative.

The participating firms worked collaboratively to identify seven key challenges where innovative solutions could drive meaningful impact.

Twenty fintechs were chosen to advance their solutions in partnership with 10 Industry Challenge Partners and universities. Over a three-month Innovation Process, teams collaborated closely with industry professionals developing and showcasing their innovations in the field of ESG.

The winners are as follows:

GAIALENS: Greenwashing Analytics Solution enabling investors to assess the greenwashing risk of funds and companies.

SCOTT LOGIC:  B Corp focused on addressing data quality and reliability in greenwashing.

SICCAR: Secure solution architecture with a focus on reliability and resilience of ESG data.

ESG 360:  An AI-Driven Platform using existing ESG Reports to produce a gap analysis for regulatory compliance that provides full audit capability.

CIENDOS: Delivering environmental data that underpins financial flows and validates environmental claims.

ESG DISCLOSE: An AI powered platform that offers AI-powered analytics, customised integration, real-time monitoring, and collaborative tools.

VERIFOXX: A data query engine enabling Industry to query the dataset of an investee/ borrower/ asset, to gain visibility on verified financed emissions

TEXPERTAI: An AI and data analytics platform specialising in social sustainability focussing on human capital, rights, and labour standards within the workforce and supply chains.

Nicola Anderson, CEO of FinTech Scotland, said: “The response to the ‘Shaping the Future of ESG in Financial Services’ innovation call has been outstanding. The level of engagement from both the fintech community and our Challenge Partners highlights the importance of collaboration in driving meaningful change. We are excited to see how the winning solutions will shape the future of ESG in financial services.”

FinTech Scotland, SuperTech (West Midlands), University of Strathclyde and University of Glasgow and eight industry collaborators have recently announced the next innovation challenge from FRIL aimed at enhancing consumer outcomes with technology and data is currently live.

This new challenge involves Industry collaborators from NatWest, Lloyds Banking Group, Equifax, PwC, Barclays, Tesco Bank, Secure Trust Bank and Dudley Building Society. It focusses on Consumer Duty Outcomes. Fintech firms from across the globe are being invited to apply by the 25th of October. Successful applicants may be eligible for grant awards of up to £50,000 to further develop their solutions. Applications to the challenge are now open and more information can be found here