The Investment Association (IA) has announced that it will be launching a specialist FinTech accelerator for the UK’s asset management industry.

The new accelerator – named VeloCity – will go live in Q2 this year, and is part of IA’s drive to boost innovation and speed up the adoption of new emergent technology across the asset management sector.

The association said that the FinTech accelerator will, for the first time, bring together FinTech firms with “market viable” technology tailored to the asset management sector, supported by industry practitioners from across the IA membership.

It added that the creation of VeloCity reflected strong demand within the asset management industry for new technology solutions which will enhance the customer experience and increase business efficiency.

VeloCity will welcome two cohorts a year of four to eight FinTech firms and assist them in turning their technology into business-ready solutions.

Solutions being sought out by the programme include those in the areas of machine learning and artificial intelligence, distributed ledger technology, cloud-based infrastructure and Big Data, that can be used in mid and back-office operations, as well as fund distribution and marketing.

Chris Cummings, chief executive of the Investment Association, explained: “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.”

Supporting the announcement, John Glen, economic secretary to the Treasury and City minister said: “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 selection of firms taking part in VeloCity will be via a “rigorous” application process and participating firms will join for a fixed six-month tenure, culminating in a demonstration day to key industry representatives and stakeholders.

The shortlisted FinTech firms will benefit from access to industry experts and gain exposure to potential clients in the asset management sector. Participants will also have the use of 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.

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