FinTech Scotland has launched its latest Innovation Labs programme, in partnership with TSB Labs.

The partnership was announced at Money20/20, Europe’s fintech event.

This initiative aims to address significant challenges within the banking sector, focusing on fraud prevention and “seamless” customer experience.

TSB Labs will collaborate with FinTech Scotland to identify and support “innovative” solutions to combat fraud, which remains a prevalent issue in the UK.

The new programme builds on the achievements of previous cohorts, which led to multiple pilot projects.

The 2025 programme is open to fintech companies worldwide that are prepared to implement practical solutions in a live retail banking context.

FinTech Scotland CEO Nicola Anderson said: “We are delighted to be partnering once more with TSB and announce this innovation programme at Money20/20.

“TSB Labs is a powerful example of how established financial institutions can partner with fintechs to deliver real impact for customers.”

The lab has outlined three specific challenge statements that seek innovative responses – improving fraud detection through “effective” customer communication, empowering customers with greater control over their payments, and streamlining the fraud reporting process.

The programme consists of two phases of structured engagement, concluding with a pitch to TSB decision-makers, providing participants with the chance to advance to pilot implementation.

TSB fraud and financial crime operations director Richard Daniels said: “Fraud is constantly evolving, and so must we.

“The TSB Labs programme is a brilliant opportunity for us to work shoulder-to-shoulder with innovative fintechs to find smarter, faster and more effective ways to continue protecting our customers.”

In November 2024, KPMG UK joined FinTech Scotland to promote innovation, accelerate growth, and enhance technology adoption in the Scottish financial technology sector.