BoS: Scottish firms boost online protection but lack appetite for essential digital skills

Scottish businesses have stepped up their protection against cyber threats in 2019, but a lack of interest in other digital tactics could be holding them back, according to Bank of Scotland’s latest Business Digital Index (BDI).

BoS: Scottish firms boost online protection but lack appetite for essential digital skills

Philip Grant

The annual report, the largest of its kind into digital skills, polled 1,500 small businesses across the UK, with 125 from Scotland. The report combines survey data with businesses’ transactional data to understand their digital behaviours and intentions.

The security index for the region, which outlines whether firms are protecting themselves against hackers and fraudsters, has shot up by 18 points on last year to 50.



An index reading of zero indicates a lack of online cybersecurity capabilities while 100 shows robust defensive measures are in place.

Local firms also have a higher-than-average interest in security. Four in five (81%) had already invested in their cybersecurity skills, or planned to in future, compared with 78% nationally.

But despite these advances in cybersecurity, a lack of essential digital skills could be hampering opportunities to boost sales or productivity.

Four in 10 (41%) Scottish firms lack the full range of essential digital skills, compared with the national average of 44%.

Scottish businesses do have an appetite to build their digital strategy and leadership skills, with more than half (52%) either having done so or planning to do so in future. This compares with 44% nationally.

In social media and marketing skills Scotland stood at 61%, six points above the UK average. 41% of firms are also building skills customer data analytics, in line with the UK average.

Philip Grant, chair of Lloyds Banking Group’s Scottish executive committee, said: “Neglecting cybersecurity is a huge risk to businesses, so it’s very encouraging to see firms across Scotland taking the necessary actions to protect themselves.

“Scotland boasts an ideal environment for success and is home to some of the UK’s most innovative start-ups. But by not actively growing wider digital skills, businesses could be missing out on opportunities.

“Our latest Business Digital Index shows that small businesses in the UK with strong digital skills earn on average £260,000 more. This means a missed opportunity to recruit more staff, increase training and ultimately grow the business.

“We have a wealth of skilled graduates coming from our world-leading universities and a host of players within this fintech revolution. We will continue to actively support this growing and developing fintech cluster, collaborating with key partners and nurturing the innovation that will help businesses thrive.”

Nationally, a third (33%) of firms said they had increased turnover and efficiency as a result of becoming more tech-savvy.

The report also found a national trend that small businesses that are less than three years old had better digital skills, with more than two thirds (69%) of this group having all six essential digital skills. UK businesses without these were also almost two and a half times more likely to be closing down in the next two years compared with those more skilled.

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