The Investment Association (IA) has announced that it will be launching a fintech accelerator, to bring together startups with market-viable technology tailored to the asset management sector.
The 250 members of the UK Investment Association employ around 93,500 people across the UK. The IA Accelerator, dubbed, VeloCity will be launched later this year with the goal of boosting innovation in the field of emerging technologies.
VeloCity will welcome two cohorts a year of four to eight fintech firms and will assist them in turning their technology into business-ready solutions. IA is particularly focused on solutions such as machine learning, artificial intelligence, Distributed Ledger Technology, cloud-based infrastructure, and big data.
Chris Cummings, chief executive of the Investment Association, said: “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 a 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.”
John Glen, economic secretary to the Treasury and City Minister, added: “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.”
The application process will be rigorous, with potential fintechs taking part in a six-month tenure, ending with a demonstration to industry representatives and stakeholders. The first cohort is set to enter the accelerator in Q2 of 2018. The fintech firms participating will have access to industry experts and potential clients in the asset management sector.