BANKING
“ OVER THE NEXT 10 YEARS WE WILL CONTINUE TO SEE THE UK FINTECH SECTOR FLOURISH IN CREATIVITY AND INNOVATION AND CEMENT ITS POSITION AS THE FINTECH LEADER OF EUROPE ”
are currently being addressed . However , it is not yet clear what will happen in the future , whether there will be major differences in terms of regulation , in terms of data protection and whether there will be additional barriers ,” Kanapienis says .
But ultimately , the future of fintech in the UK is bright , and although there have been some casualties along the way , in general , Brexit has not wrought the negative destruction that was predicted for the space .
Doukanaris says that despite Brexit and the pandemic , London has maintained its status as the Fintech capital of Europe . “ Fintech is one of the fastest-growing sectors in the UK economy . New figures by
Innovate finance show that the UK Fintech sector raised a total of $ 5.7bn in H1 2021 , an increase of 34 % from the previous year ($ 4.3bn ).
“ Over the next 10 years we will continue to see the UK Fintech sector flourish in creativity and innovation and cement its position as the Fintech leader of Europe .”
He continues , “ An important change is to make sure there ’ s enough financial support for early stage Fintech startups . Despite Rishi Sunak recently launching the government ’ s
£ 375mn Future Fund , a scheme designed to drive investment in innovative firms of the future , some Fintech companies may struggle to be eligible unless they ’ re at the cutting edge of R & D . So , I believe there should be more allocated funds from the government to help Fintech startups thrive in this crucial early stage .”
The UK has not lost it ’ s international appeal either , and is still considered a leading fintech hub , says MacGregor . “ Happily , despite Brexit , many skilled workers from across the channel do still find the UK an attractive place to settle and work . It is crucial that British businesses can continue to access European talent , so the government must eliminate as many of the unwanted logistical hurdles for these in-demand individuals as possible .”
Kanapienis agrees , and says stability has been achieved and fintech in the UK will continue to thrive and be world-leading , despite the dire pre-Brexit predictions and the added complication of a pandemic . “ A number of European countries have exploited Brexit by inviting financial companies to license and set up offices in their countries , but the pace seems to have slowed significantly and the need is no longer as pronounced as it initially seemed . As a result , the UK will certainly remain the capital of fintech for the next 10 years .
He adds , “ Europe does not yet see an environment that can compete successfully with the UK , as there must be synergies between both the business environment and regulation .”