Start-ups targeting asset management will be helped to turn into business-ready solutions through a fintech accelerator project unveiled by the Investment Association (IA) today.
The new IA fintech accelerator – named VeloCity – will be launched later this year to boost innovation and speed up the adoption of new emergent technology across the sector.
VeloCity aims to bring to market technology tailored to the asset management sector with support from industry practitioners from across the IA membership. The IA says the creation of VeloCity reflects the strong demand within its membership for new technology solutions that will enhance the customer experience and increase business efficiency.
VeloCity will take in two cohorts a year of four to eight FinTech firms across machine learning and artificial intelligence (AI), Distributed Ledger Technology, cloud-based infrastructure and big data, targeting solutions across mid and back office operations, fund distribution and marketing. Firms making it through the application process will join for a fixed six month tenure, culminating in a demonstration day to key industry representatives and stakeholders.
The first cohort will arrive in Q2 of 2018, the participating FinTech firms will benefit from unparalleled access to industry experts and gain valuable exposure to potential clients in the asset management sector. Participants will be able to use a bespoke co-working space and receive guidance from experts drawn from related financial and professional services sectors, as well as from an advisory panel comprised of senior industry leaders and digital technology specialists.
IA chief executive Chris Cummings says: “To remain globally competitive, the UK asset management industry must be restless in its quest for innovation and reinvention. Fintech firms are a key element in this process, driving innovation across the asset management industry to the benefit of investors, savers and pensioners.
“The launch of VeloCity, the IA’s new fintech accelerator, will act as catalyst in speeding up the take-up of new technology in the sector and ensure that Fintech firms are embedded into the asset management ecosystem”.
Economic Secretary to the Treasury and City Minister John Glen says: “The UK is a world leader in asset management, but to stay that way we’ve got to keep ahead of the curve. There are over 93,500 people employed in the UK’s asset management sector, so the fintech accelerator – the first of its kind for the sector -will be fantastic news to them and to future entrepreneurs hoping to crack the market.”