Britain will vote on the European Union Referendum on Thursday when millions of people will decide whether or not to stay in the EU. If Britain decides to leave, though, it could cost the UK economy as much as $5 billion over the next five years, according to a report conducted by consultancy William Garrity Associates.
When it comes to the Brexit campaign there seems to be one theme consistently circulating: that EU regulation is stifling those who want to branch out on their own and make a name for themselves in the world of business.
Naturally, you would think then that the FinTech sector, considered to have the most entrepreneurial people, would be in favor of leaving the EU. That, however, is not the case.
A recent poll by Financial News found that two-thirds of financial technology firms believe that leaving the EU would produce a negative impact on the UK startup scene.
To further reinforce the impact that the UK leaving the EU would have on the FinTech community, U.S. payment systems giant ACI Worldwide recently warned that a Brexit would be a disaster and would jeopardize London’s role as a central hub for financial services in Europe.
Now, however, in a new report commissioned by FinTech Week, William Garrity Associates has undertaken the task of determining the risks that a Brexit would produce by detailing ten factors, estimating that billions of dollars of FinTech investment to the UK could be at risk.
Among the ten factors listed include UK’s FinTech human capital, which amounts to 30% coming from the EU and overseas; a lack of say in the single European capital market and digital single market, which is estimated to contribute an additional €415 billion each year to Europe’s economy; higher taxation, more bureaucracy, and competition for company location; reduced access […]
