FinTech Magazine - November 2021 | Page 51

“ THE FUNDAMENTAL CHANGE , WITHOUT A DOUBT , IS THAT THE UK IS NO LONGER PART OF A COMMON SYSTEM , WHICH MEANS THAT SO-CALLED LICENSE PASSPORTING IS CHANGING ”
BANKING
“ THE FUNDAMENTAL CHANGE , WITHOUT A DOUBT , IS THAT THE UK IS NO LONGER PART OF A COMMON SYSTEM , WHICH MEANS THAT SO-CALLED LICENSE PASSPORTING IS CHANGING ”
LIUDAS KANAPIENIS ONDATO
without doubt the biggest governance shift impacting UK Fintech companies following Brexit . Previously , they could passport their UK banking license to other European countries enabling them to serve customers right across the EU . However , from March , their UK license was no longer valid in the EU and companies had to apply for a separate European license to serve European customers . This is a fairly laborious process requiring you to register an office somewhere in the EU , with license applications taking up to three months .”
Fintech in Europe after Brexit It ' s not just UK-based fintechs that are feeling the post-Brexit pinch as users from the EU who are using UK-based fintech services could potentially face issues too . But MacGregor says positive strategies that work with the new restrictions could strengthen the UK ’ s fintech services globally .
He says , “ The UK is in a fortunate position as we can take existing European regulations and build on them to create a world-leading framework that allows British businesses to innovate and create new market segments .”
MacGregor points to the recent Khalifa Review and says the report was the first step towards a future where the UK cements its role as the leading fintech hub ahead of challenger nations , but only in the right conditions . fintechmagazine . com 51