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Brexit has come and gone, but its effects are still rippling throughout the markets.
Innovate Finance, a U.K. members association for fintechs, surveyed its members about the effects of Brexit on fintech companies. The association plans to present its findings to national and local governments in London as a way to influence new negotiations between the U.K. and the European Union.
Innovate Finance asked members to rate on a 1-5 scale how much they agreed or disagreed with statements about Brexit’s effect. A "1" represented strong disagreement and "5" represented strong agreement.
"Access to international capital and investment into the sector is the most critical factor for the ongoing success of UK fintech." This statement received the highest average score at 4.7, followed closely by access to the European single market, and free movement of labor and access to EU talent, both of which scored a 4.5.
Members pegged better business investment and taxation as the new opportunity most likely to stem from Brexit with an average score of 3.4. Members were almost neutral on statements regarding potential opportunities when compared to statements on critical factors. Most opportunity statements scored near a 3.
Meanwhile, 48% of firms are thinking about relocating jobs or expanding their team primarily outside of the U.K., while 24% were neutral on the idea and 29% disagreed. Several financial firms with operations based in London (such as JPMorgan, Citi, Goldman Sachs, and UBS) have all cautioned that they could relocate employees if the new deal doesn’t work in their best interests.
The fintechs’ priorities mirror those of the broader financial services industry, which contributes approximately 8% of the U.K. economic production and 17% of London’s. This significant contribution should give […]
