Many wonder how Brexit will impact the United Kingdom’s FinTech sector, especially given recent data that suggests nearly 42% of FinTech employees in the United Kingdom come from abroad. In fact, Innovate Finance suggests Brexit could lead to a 3% FinTech workforce gap by 2030 and cost the sector GBP 361 million. At the same time, many FinTech companies currently located in the United Kingdom are planned an exit of their own. So, what does all this really mean for FinTech in the United Kingdom?
The fact is that nobody really knows; however, doomsayers are likely overexaggerating. The government is well-aware of how Brexit will impact various sectors and is working on measures to ensure that they are properly-supported. For example, the government has allocated a greater budget to fuel finance innovation. Moreover, London is a leading city worldwide for tech startups (trailing only Singapore, Berlin and Chicago), and this will not change overnight. While the landscape of FinTech in the United Kingdom will no doubt change somewhat due to Brexit, it still remains (and is likely to continue to remain) a global hub for all things tech, including FinTech.