A GLASGOW-based regulatory technology (RegTech) firm has received a £1.97 million grant from Scottish Enterprise, it was announced by First Minister Nicola Sturgeon yesterday.

Encompass, which employs 46 people in the city, has been given the funding for research and development (R&D) towards developing an Artificial Intelligence (AI) platform for its financial services clients. The grant is part of a project with a total value of £4.9m, which will create 33 new jobs in Glasgow.

The AI service will help Encompass customers to “quickly and accurately” find risk-relevant information on their own customers, organisations and investments.

Sturgeon said: “Encompass is one of a number of international companies that has chosen to locate and steadily expand its operation, making Scotland an attractive place to grow its business.

“From its Glasgow base, the company has access to markets, a supportive business environment and has been able to identify local talent from Scottish professionals in the engineering and software development sector.

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"Backed by almost £2 million of R&D investment from Scottish Enterprise, Encompass will be able to develop artificial intelligence software tools that will assist companies in the financial sector to reduce operational risks associated with meeting compliance and regulatory standards.”

Encompass’s work in Glasgow has primarily been focused on its Know Your Customer product, where it uses data analytics to ensure clients do not unknowingly trade with organised crime or the proceeds of crime.

Risk-relevant data can have a significant impact on the market value of a company – Encompass reports that many of their clients want to avoid carrying out manual searches in order to manage their reputation.

Wayne Johnson, Encompass’s co-founder and CEO, said: “We are delighted to receive this grant, which will allow us to carry out crucial, timely work. There is a considerable demand in our space for a solution of this kind, and this development will be central to us continuing to bring innovative solutions to the market.

“We are particularly pleased to be able to advance our work in Glasgow in this way. We have enjoyed excellent support and growth here, and look forward to furthering that.”