UK FinTechs: Prepare for a (Br)exit Stage RightJanuary 13, 2017
2016 was without a doubt one of the most politically turbulent years in recent memory. From Brexit to Donald Trump, the initial shock waves across the world manifested themselves in a wave of uncertainty and some anxiety amongst UK businesses as concerns surrounding trade and the UK economy circulated.
Many of the subsequent reverberations of Brexit are, of course, yet to be felt. In Passport to the Future, a report published this week by the Emerging Payments Association (EPA), UK-based FinTech companies have been advised on the best options for relocation overseas, should the UK leave the single market and consequently lose EU passporting rights.
The loss of such rights could be a devastating blow to the 5,500 UK registered passport holders currently trading in the EU. Without them, they would be unable to deliver products and services across the European Economic Area (EEA) and be forced to focus either on non-EU export channels, or relocate to another EEA country from where they could continue selling across the remaining countries.
Passport to the Future notes that the UK remains the strongest headquarters for a regulated payments company at present. Following a ‘deep-dive’ analysis of shortlisted contenders, however, Cyprus, Denmark, Ireland, Luxembourg, Malta and Sweden have been highlighted as the six best-placed alternatives for UK FinTechs.
The report warns that any relocation could have a negative impact on the UK economy, with UK FinTech contributing £6 billion to the treasury and employing 60,000 professionals as part of the wider financial services sector. As a result, the EPA are committed to lobbying the government to ensure that UK companies’ right to do business across the EEA are unaffected by any repercussions of Brexit.
The EPA is the UK’s leading payments community. PCT are proud sponsors of Passport to the Future, and an active partner of the EPA. Download a full copy of the report here.
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