Not long ago, the City of London enjoyed the distinction of being known as the financial technology (fintech) capital of the world. These days, however, the fintech world is looking for a new place it can call its capital as London is falling victim to the new business rules being set by the Brexit referendum.
According to Financial News London, European cities such as Amsterdam, Berlin and Dublin are vying for the opportunity to emerge as the new fintech capital. Sadly for London, there is not much that business leaders can do at this point to retain the title.
More than 60,000 people in London were employed by companies operating in the fintech sector, and many of them are startups. Judging by the investment to revenue ratio, fintech has been very good to London; in 2015, fintech companies attracted more than $500 million worth of investment capital as they generated an astonishing $7 billion in revenue.
For developers, technicians and executives working in London fintech circles, the upcoming Innovate Finance Global Summit, which will take place in April, will be the last major conference held in London. To this effect, some of the topics that will be discussed include the following:
* Access to Talent
* Brain Drain
* Access to Funding
* Government Support
Of the points above, fintech leaders believe that the only one that seems hopeful for London at this time would be government support. Mayor Sadiq Khan has vowed to do everything in his power to ensure that Downing Street does not forget about London’s fintech sector; in fact, the Mayor is willing to gain a few enemies by trying to pursuit special status in the European Union even as the rest of England continues on its merry Brexit way.
As to the brain drain and reduced access to funding, there is not much that can be done other than convincing investors that they can actually stay in London and operate in the same fashion as they used to prior to Brexit. Prime Minister Theresa May says that there is no turning back, and thus London may have to say goodbye to fintech.