“Application programming interfaces are making a significant impact. For financial services, this allows banks to streamline their processes. In turn, it facilitates what will, in our view, be the biggest topic and challenge of 2017 – open banking,” says Callum Sinclair, of solicitors Burness Paul.
“Government and EU initiatives have determined to open up access to data held by banks to stimulate competition and innovation in the sector. Already we are seeing some exciting ideas from Scottish businesses eager to be at the forefront of these developments.
“Fintech disruptors are leading new competition, and major financial institutions will have to adapt to a market which is continually changing if they are to enjoy continued growth. Our experience is that banks recognise this, but as with all large, regulated institutions, face challenges of agility.
“Nevertheless, we are now seeing banks investing increasingly in new technology and beginning to partner more effectively with smaller fintech SMEs. If Scottish banks can continue to back promising fintech startups and innovate with their internal process, Scotland can realise its ambition to become a centre for fintech enterprise.”