London’s fintech sector will likely ride out the Brexit storm in the medium-term
The UK will remain a bastion of Europe’s fintech arena, despite the challenges Brexit will throw up for startups and other technology firms.
International rating agency for startups Early Metrics found that while London, the capital of Europe’s fintech sector, is constantly challenged by other cities, with that set to increase when Britain leaves the European Union, the capital is still set to remain the fintech leader for the medium-term.
Early Metric looked at 1,500 firms across Europe, deep diving into how they partner with other enterprises, raise venture capital or get brought-out to determine that London is still in pole position.
“The UK is currently facing its most serious challenge so far as the fintech hub of Europe,” said Antoine Baschiera, chief executive of Early Metrics.
“Although it’s too early to draw any definitive conclusions on what impact Brexit will have, companies are already assessing the implications of fundraising, talent acquisition and talent retention.
“Many fintech businesses rely on fast developing technologies in order to maintain a competitor advantage. This requires a company to be able to move quickly and have access to the right talent across borders.
“However, amidst the long-term Brexit uncertainty and competition from elsewhere, London remains an attractive hub for talent and a dense cluster of financial institution.”
Baschiera noted that London will maintain its fintech influence if this situation does not change in the face of Brexit, highlighting the capital’s leading-edge over rivals.
“Positioned as the gateway between the US and Europe, the UK already possesses expertise in successful fintech ventures and the capability to continue this trend, demonstrated by the $564 million (£425m) invested in fintech start-ups this year alone,” she said.
Given Brexit negotiations are still underway and fraught with various mishaps and confusion, with the Prime Minister attempting to take a hard line on negotiations and EU leaders doing the same only at Britain’s cost, the true impact of Brexit has yet to be made truly clear.
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