THE success of Edinburgh-based Nucleus Financial provides a notable reminder that the fact Scotland boasts expertise in sectors such as asset management and software development can give it an edge in the key financial technology market.

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Nucleus has built a fast-growing and profitable business after developing online platforms that advisers can use to manage the investments of their clients.

The market is set to grow exponentially as people in the UK take increasing responsibility for saving for their futures leaving Nucleus eyeing sustained growth.

As Nucleus has shown its ability to capitalise on advances in information technology to help advisers respond to a raft of changes in financial services regulations, directors have reason to be confident in its growth prospects.

If they are right, the company’s success will be good news for jobs in Edinburgh where Nucleus already employs more than 200 people, many in high-skilled roles.

After increasing full-time equivalent employee numbers to 218 last year, from 192, Nucleus said it expects to grow staff levels this year, albeit at a lower rate.

Chief executive David Ferguson said yesterday he saw no reason for the firm to move to a bigger city such as London to maximise its potential.

He noted the firm can tap in to a strong talent pool in Edinburgh containing people with valuable customer services experience gained in the financial sector and skilled technology staff.

With a range of other financial technology firms making progress in Scotland the omens are good. Yet Mr Ferguson’s experience also suggests Scotland must ensure it does not become a victim of its success.

He notes the fact Edinburgh is home to technology stars including the Skyscanner flight search business means the competition for software developers in the city is intense.