City Region collaboration at heart of world-first hub for global open finance

The University of Edinburgh’s Futures Institute will host the Global Open Finance Centre of Excellence.

One of the City Region Deal’s Data-Driven Innovation hubs is set to host a newly announced open finance centre that will develop leading research, innovation and educational capabilities to improve the efficiency and safety of data-driven financial services.

The University of Edinburgh’s Futures Institute (EFI) will house the Global Open Finance Centre of Excellence, which has been awarded a £22.5m investment from UK Research and Innovation’s Strength in Places Fund.

The Centre – which is a collaboration between the University of Edinburgh, the Financial Data and Technology Association and Fintech Scotland – aims to provide a neutral, trusted environment for cross-industry cooperation to tackle pressing societal challenges and Open Finance research.

Adam McVey, leader of the City of Edinburgh Council, said: “Like all cities, Edinburgh’s industries have been hit hard by the impact of Covid-19. But our local economy and institutions are resilient and strong, positioning us well for our recovery from this crisis.

“This City has always placed knowledge and innovation at the heart of everything we do, leaning on the strengths of our financial, creative and tech sectors to work with our world-leading universities and create new jobs. It’s this collaborative approach which led to the City Region Deal – a £1.3bn investment to drive inclusive growth across Edinburgh and South East Scotland and create an economy that everyone who lives and works here can benefit from.

“This will help us build a sustainable future for key industries in the City and shows that our City Region Deal is having a real impact now in the Capital. The pledge of £23m from the Strength in Places Fund is a prime example of Edinburgh’s attractiveness as a place to invest and a vote of confidence in our city’s strengths and sectors. Housed within the Edinburgh Futures Institute, it will create new jobs and training opportunities, drawing on expertise from across our universities, financial services and fintech sector.”

Professor Lesley McAra CBE, Director of the EFI, welcomed the announcement, commenting: “We are delighted that this important Centre will be a part of the EFI eco-system. The Centre aligns with our participatory approach to education and research in a challenge-led environment and in particular with our aim to support inclusive economic growth across the Edinburgh City and the wider City Region. We hope that the Centre will reshape the face of financial services for communities and citizens in the context of the transition from lockdown into Covid-19 recovery.”

EFI Director of FinTech, Dr Gbenga Ibikunle said that the new Centre aligns well with EFI’s approach to Fintech and, as a committed partnership, it would bring established research expertise at the University of Edinburgh together with other Scottish universities and industry partners, creating an opportunity to change the industry for the better. Dr Ibikunle added, “The strong support for the Centre shown by UK regulatory bodies – including the Competition and Markets Authority, Financial Conduct Authority, Information Commissioners Office, and Centre for Data Ethics and Innovation – is a good indication of how important and timely this initiative is.”

Faith Reynolds, Independent Consumer Advocate, said: “Covid-19 has reminded many of us of the value of community and working together for the common good. At the same time, technology has come to the fore connecting us with people and services, highlighting the importance of privacy, independence and the ethical use of data.

“GOFCoE’s establishment is an extremely timely initiative to develop ethics and trust frameworks for data sharing, improving security and privacy for individuals while realising the benefits of data for all society.

“The Money and Pensions Service UK Strategy for Financial Wellbeing showed that pre-Covid 11.5m people had less than £100 in savings and 9m were borrowing to pay for essentials. Insights from the Global Economic Observatory will improve our understanding of how people spend, save and earn across the UK. Usually the preserve of large corporates and bigtech, the power of data will be available to everyone including charities and consumer organisations helping them to get help to the people and businesses who need it most, when they need it.”

The bid for the centre was developed through the University of Edinburgh’s Data-Driven Innovation initiative, which is part of the City Region Deal. In addition to the University of Edinburgh, the centre will also work closely with the Universities of Glasgow, Strathclyde, and Stirling, Napier University, Heriot-Watt University and other partners.

For more information, contact: GOFCOE@ed.ac.uk