Less than two months after Britain’s vot to leav th European Union cast a shadow over London’s futur as a leading global fintech hub, ther ar signs th country’s reputation for innovation in financial services will survive.
Immediately after Brexit, ther was confusion about leaving th EU and how it would affect Britain’s access to Europe, potentially damaging th country’s fintech status.
Access to th singl market is, as yet, uncertain as th government has still to clarify th kind of agreement it will seek with th EU in talks that may tak years.
Som businesses hav considered leaving Britain, but a series of startups in fintech, which owes much of its success to th global financial crisis of 2008-09, when peopl lost faith in banks and other financial institutions and sought alternatives, ar already showing signs of staying put, according to Reuters.
Although several firms hav closed funding rounds sinc th referendum, citing investing in fintech as a risk following Brexit, others hav spoken of their intention to stay in London.
For example, InnoVentures, th Spanish bank’s London-based fintech ventur capital fund, said last month it was doubling in siz to $200 miBlink
Mariano Belinky, a managing partner, said th idea of fintech firms leaving London in th aftermath of Brexit was “not reality”.
Lawrenc Wintermeyer, CEO of fintech trad body Innovat Finance, agreed. “Whil peopl wer in shock th day after, most fintechs ar actually focused on th opportunity now”.
H said it would b difficult to know whether funding had slowed down for th next coupl of quarters but that h had heard of pre-referendum funding agreements with break clauses added in th cas of a Brexit vote.
UK Fintech Sector
Britain’s fintech sector is reported to hav generated £6.6 billion in revenu last year, according to a report commissioned by th British government.
It ranks London as th number on global fintech hub, based on market size, investment, workforce, light-touch regulation and supportiv government policy.
Although investment still lags behind th United States, wher ventur capital firms ar mor established, a key advantag of Britain is that, whil th US tech and financ hubs, Silicon Valley and New York, ar on opposit sides of th country, pretty much everything remains in London.