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The modern system of branch banking (in which banks maintain a nationwide system of offices rather than one or two central offices) originated in Scotland. Only strong political pressure during the 19th century prevented the resultant strong banking system from taking over banking in England. However, although Scottish banks proved unwelcome in England at the time, their business model became widely copied, firstly in England and later in the rest of the world.

Scotland ( Alba in Scottish Gaelic and sometimes known also as Caledonia) is a country or nation and former independent kingdom of northwest Europe, and one of the four constituent parts of the United Kingdom. Scotland has a land boundary with England on the island of Great Britain and is otherwise bounded by seas and oceans.

Islam is the largest non-Christian religion in Scotland, although its numbers remain very small.

In 1326, the first full Scottish Parliament met. The parliament had evolved from an earlier council of nobility and clergy, the colloquium, constituted around 1235, but in 1326 representatives of the burghs — the burgh commissioners — joined them to form the Three Estates.

During the 1920s and 1930s, as ship-building and other industrial pursuits came to be more profitable outwith the British Isles, Glasgow and Clydebank slowly decayed and fell into economic depression.

Banking in Scotland also features unique characteristics. Although the Bank of England remains the central bank for the UK Government, three Scottish corporate banks still issue their own banknotes: (the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank). These notes have no status as legal tender in England, Wales or Northern Ireland (although they can be used throughout the UK, particularly in Northern Ireland, where Irish banks also issue their own banknotes, and they are also freely accepted in the Channel Islands). In Scotland, neither they nor the Bank of England's notes rank as legal tender (as Scots law lacks the concept), however banknotes issued by any of the four banks meet with common acceptance

In 1468 the last great acquisition of Scottish territory occurred when James III married Margaret of Denmark, receiving the Orkney Islands and the Shetland Islands in payment of her dowry.

In 1997, the Blair Labour government of the United Kingdom held referendums on the issue of devolution: the creation of national assemblies in each of the three countries of the UK except England. Voters in all three countries voted in the affirmative, reversing parts of the three-hundred year old Union of the Parliaments. The new Scottish Parliament stands next to Holyrood House in Edinburgh.

HM Queen Elizabeth II, head of state of the United Kingdom, is descended from King James VI of Scotland, the first Scottish monarch to also be King of England (James I of England from 1603). While some controversy has simmered amongst the Scottish public over her official title since her coronation (many believe that, being the first Queen Elizabeth of Scotland, she should use the style "Elizabeth I"), the courts of Scotland have confirmed "Elizabeth II" as her official title. She has said that in the future monarchs will follow the international ordinal tradition that, where a monarch reigns in a number of non-independent territories (or independent territories that agree to share a monarch) that each have a differing number of previous monarchs of the same name, the highest ordinal used in any of the territories is the one used across all.

Scotland retains its own distinct sense of nationhood. Academic research consistently shows that people in Scotland feel Scottish, whilst not necessarily feeling the need to see that translated into the establishment of a fully-independent Scottish nation-state.