London, considered by many as the financial capital of the world is bound to be affected by Brexit. It remains to be seen if Brexit is going to be beneficial or detrimental for the UK Fintech industry. While reading about the effects of Brexit on Fintech I came across a lot of conflicting articles and experts have varied opinions. I personally feel Brexit is going to be detrimental for the UK because
- The loss of passporting which gives London-based business access to all the European Union nations to sell their services is going to be a big blow for the UK fin tech industry. This could result in a loss of 30,000 fintech jobs and 40 billion pounds in revenue.
- VC-backed Investment trend in the UK has been decreasing whereas in Europe the Fintech industry is booming.
- Limited market access might result in less foreign investment which in turn would prevent many fintech startups in the UK. Also, the existing startups would be tempted to move to other countries where it is easier to get funding.
- The biggest problem is going to be the talent pool. The loss of passporting will result in an exodus of highly skilled talent in the UK.
http://www.techworld.com/news/e-commerce/uk-could-lose-30000-fintech-jobs-after-hard-brexit-3652882/
http://www.businessinsider.com/brexit-is-already-hurting-uk-fintech-2016-12
Articles for why Brexit will be beneficial for the UK fin-tech industry:
http://www.businessinsider.com/a-hard-brexit-might-actually-be-a-good-thing-for-fintech-2016-10