The UK, specifically London, has long been viewed as the global capital of technology, more specifically, FinTech. Home grown start-ups and their international counterparts have long sought their fortunes within the UK, and as such, areas like London’s Silicon Roundabout have become synonymous with innovation.
Changing tides on the horizon?
Since the UK’s vote to leave the EU, the dynamic has changed significantly and it has been widely reported that a number of countries are attempting to steal the FinTech crown from the UK. Even within the UK, there has been dissent – namely the city of Edinburgh attempting to position itself as the new FinTech capital. More worryingly for the UK have been steps internationally to become known as the center of FinTech and subsequently attract more start-ups. Germany is the most notable of recent examples, opening an office in London in an attempt to attract British firms overseas. The efforts of the German Government have gone even further, with it sending letters directly to UK tech companies, asking them to consider moving their businesses to Berlin.
The UK is remaining strong
Despite Brexit, the UK remains an attractive location for many, and as a result, any attempts to poach UK-based FinTechs are likely to experience difficulties. According to a study carried out by EY, the UK topped a list for the most FinTech friendly jurisdictions. Furthermore, the Bank of England has made serious attempts to accelerate Blockchain via its newly opened FinTech accelerator. This all represents an ecosystem that is very FinTech friendly and as a result, is an environment that FinTechs will be unwilling to leave – despite the best attempts from overseas.