The launch of the Kalifa Review earlier this year marked the UK fintech sector’s ‘Big Bang’ moment and set out a strategy that will accelerate growth over the next three years, enabling post-pandemic recovery.

The report specifically highlighted the Scottish fintech sector as a successful driver of innovation and jobs since it was established in 2018, shown by the double-digit growth across the number of fintech companies that now call Scotland their home.

Not only does the associated skills growth and jobs boom signal a bright future for the sector, other clusters across the UK and further afield in Europe and the Middle East are taking notice.

With many now looking to Scotland as a model to emulate, it is important to remember that these impressive results were not delivered overnight and for other clusters that wish to mimic the Scottish experience, there are valuable lessons to learn.

Scotland’s fintech cluster was born out of the largest cities in Edinburgh and Glasgow but is now a truly Scotland-wide initiative, with leading fintechs based in locations right across the country, including Dundee and Aberdeen.

Since 2018, the number of fintechs that are now based in the country has grown by over 400%, from around 25 to almost 160 organisations.

Financial services firms have also launched innovation teams and programmes in Scotland, further supporting the growth of the sector.

Connection has been a key component of the Scottish experience, driven and directed by Fintech Scotland, which has allowed different parts to coordinate efforts and collectively propel the growth of the cluster.

Buy-in from stakeholders across the country has also been key to fuelling the talent pipeline. For example, Fintech Scotland now has 27 strategic partners, including several universities.

For emerging clusters in other markets that hope to emulate the Scottish experience and success, these are key elements to consider, put in place and nurture to ensure growth.

However, the journey is far from over, and the Kalifa Review noted several recommendations to ensure the sector does not lose momentum.

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While Scotland’s fintech cluster is well established, more work can be done to connect with and define links to other clusters in the UK, including London. This will drive further investment and development in areas such as R&D.

Additionally, taking steps to invest in people will secure the long-term future of a cluster. It will become increasingly important for Scotland to retain emerging talent from Scottish universities and efforts must be made to establish a new visa stream for global applicants.

Investment is always a key driver in helping fintechs move from start-ups through to their higher growth stage, and Scotland is no different to other markets in this regard.

Looking forward, Scotland is attempting to address this with the fintech growth fund, which will be crucial in taking it’s cluster to the next level.

There is much to celebrate about the Scottish experience, with lessons that can be applied to anyone hoping to drive forward the growth of their fintech sector.

However, it’s also important to recognise the unique environment present in individual clusters that may lend themselves to new ways of working that Scotland could also learn from.

Ultimately, it’s only by working collaboratively across markets and clusters that the true potential of the fintech sector will be realised, across the UK and globally.