UK Fintech and Brexit

(I searched for the UK Fintech and the Brexit, but I didn’t found any topic about this subject.)

Now that final countdown is near the end, in the end 2020 UK will leave formally the European Union. Some Fintechs will go for a country in European Union (such as much of other more incumbent financial institutions.)

  • Revolut will be go first to Lithuania and then to Ireland.
  • Trading 212 will “reallocate” to Ireland, even having already a Bulgarian license.
  • Freetrade seems to had chosen Sweden (a weird choice? Being Ireland a more consensus choice and a close geographical and linguistic choice).
  • Skrill already have left London to Ireland.

Other UK Fintechs have made any moves to prevent a (hard) Brexit?

For example, TransferWise, Monese, Curve, any P2P Lending platform, etc.

Hi RLX, the UK is already out of EU, but they do still have to follow the rules until the end of this year, unless a trade deal is happening :sweat_smile:

As far as I know most of the fintechs that also offer accounts in EU, have already prepared for this situation.

You can find articles like the ones below for most of them:rocket:

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Well, six weeks to go, deal or no deal? The ahem, politicians from all sides are certainly taking this to the wire.

If only there had never been this insistance that the whole of Europe should eventually become a Federal entitity, then perhaps the whole Brexit situation would never have come about. Our mate ‘Dave’ must be chuffed to bits with the way this has all turned out so far.

Monese and TransferWise will go for Belgium.

Curve planned to go to Germany, the Wirecard case forced them to search for another location, ending in Lithuania.

Crowdcube have a Spanish license, and now that will merge with Seedrs, will go for Spain?

The P2P Lending platforms, will also go for European Union countries?

The British Fintechs are being scatter across several European Continental countries.

Do you think, the Brexit will weak UK as the leader of an European Fintech hub?

And all the other Fintechs that were planning an expansion to the European continent, what will happen? (Atom Bank, Monzo, Starling, and all the other UK-based neo banks that were British clients-oriented.)

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I think, to be honest, the answer to these questions is probably 1) no and 2) they will still expand into the EU market.

It may be more difficult to launch in other markets, trading conditions dependant, but we will still be a neighbouring market and the EU will only require setting up a base in one country to serve the whole 27 - so it will still be an attractive prospect for Fintechs.

London is already far ahead of other European cities in terms of being a Fintech hub and they are unlikely to catch up any time soon - so it will retain it’s position as a European hub, I expect.

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