Brexit could be the making of the UK’s fintech sector – and even the trigger point that transforms some British companies into world leaders.
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.
Far from being an economic disaster, a British exit from Europe could be the best thing that's ever happened to UK fintech, says Michael Jackson, partner at Mangrove Capital and former COO at Skype.
Eight weeks ago I wrote Part 1 of this post called #Brexit good for UK #FinTech and got an overwhelming response - mostly abuse! 😫 I had to double check my post to make sure I hadn't inadvertently insulted somebody's prophet or, worse, suggested again that Bitcoin is just an over-hyped big waste of electricity! Turns out I simply held a controversial and, what I thought at the time to be, minority view.
"Obviously Brexit creates uncertainty and uncertainty is not good," said Hank Uberoi, CEO of Earthport, a London-based global payment services company. "But the reality is, nothing is going to change in the next couple of years other than wondering what's going to happen and London has a significant amount of advantages."
Those advantages include a credible regulatory system, a strong educational system, a good source of talent, according to Uberoi, who thinks these characteristics will remain in place regardless of Brexit.
Fintech after Brexit: 3 Positive and 3 Negative Impacts
While the overall balance of Brexit on fintech is clearly negative, this article takes a look at the positives too.