Right at one year since the end of Brexit’s transition period, the United Kingdom is officially completely out of transformation. All eyes have been on Britain to see how this massive hub of fintech handled the changes—and whether the rest of the world would be following in its footsteps or cleaning up after it.
Brexit’s impact had some unexpected changes, including obstacles to licensing and data regulation. Because the EU no longer regulates Britain’s fintech industries, they were free to almost rewrite their own script, but that came with a cost.
Fintech companies can’t access the EU markets unrestrictedly anymore. But that could change if they became a Fintech haven.
Focusing on Fintech Talent
The loss of business in the fintech sector was no minor thing for the UK. In fact, global fintech revenue is projected to hit over $300 billion within the next year, and the UK was home to many of the brightest minds in the industry.
These individuals often left in search of more lucrative pastures, where the EU markets weren’t restricted. So the UK’s focus on making the country a fintech haven makes sense.
To attract fintech professionals (and keep the ones they have), the government is proposing a visa that fills the gaps from Brexit’s minimized access to the EU skills. Those who want to work in the UK, but have understandable hesitation while Brexit is still dealing with growing pains, will be covered.
In the past, the UK was the go-to place for the top talents in the fintech industry. But when the country left the EU, they also left behind their right to receive Europe’s professional workforce. Along with the lack of incoming skilled workers was the loss of internal minds who were unhappy with the results of Brexit.
While London was the main competition to beat, other major cities have quietly stepped up their fintech industry. Now, professionals in the EU who would have once gone to the UK are turning to places like Amsterdam and Berlin instead.
The tech visa solution could be a way to stop the mass flood of loss of talent. While the government continues to work on finding a way to integrate Brexit with the EU’s market, the country is losing essential professionals quickly.
Making Other Changes
Crypto is another hot-button topic in the world of fintech. The UK has recently added bans on selling crypto and its derivatives, as well as increased anti-money laundering regulations. With blockchain and decentralized financing such a massive part of the fintech industry, this limits the market for UK businesses even further.
Competition in these sectors is fierce. If the UK doesn’t change its stance soon, it will lose even more business. By becoming a fintech haven, essentially choosing a neutral position on crypto and other financial technology, the country can regain its position as a leader.
As the changes unfold, financial experts like Businesstrex are keeping a close eye on the country’s policies and regulations. What happens in the UK won’t stay in the UK—the consequences will have a butterfly effect that will spread across the entire fintech industry.