Results of the recent referendum over Britain’s exit from the EU have left an ocean of confusion, dozens of questions and no answers. Brexit is by far the hottest topic at the moment, and debates about potential implications of such a bold move are intensifying. London crowned a global fintech capital
In 2015, the British fintech sector generated £6.6 billion in revenues and attracted approximately £524 million in investment, according to EY , a professional service firm. UK fintech firms employ about 6,000 people which is about 5% of the total financial service workforce. That makes the UK larger than New York, Singapore, and Hong Kong competing for a status of the world’s fintech hub.
The UK has been at the forefront of the financial technology revolution with companies specializing in lending and money transfer feeling quite confident supported by government initiatives to help investment in a sector that is growing quite rapidly. Fintech is hit hard in this game of truth or dare
However, following last Thursday’s referendum some fintech business players and investors have already started questioning the future of business in the UK. So, is the UK going to lose its status of the world’s fintech hub?
UK, being a member of the EU, offers technology companies a number of advantages. First of all, any businesses regulated by the UK authorities can ‘passport’ their products across the European Economic Area, therefore businesses’ concerns of whether the situation might change are fair. Brain drain possible
As many fintech companies employ developers from countries like Portugal and Poland, the general worry that occupies fintech companies’ leaders is a brain drain of talent and skills. Brexit might make it more expensive and complicated to attract and retain staff.
In addition, companies are bound to a number of EU regulations about data protection. […]
