A common rule of business is that even in times of adversity and hardship, there’s money to be made. Although it has been widely publicised Brexit is a bad thing for fintechs in the UK, we as an industry now need to face this reality. But fear not, every reality comes with opportunities.
Developing cross border e-commerce opportunities
With the exchange rate for sterling having fallen to levels not seen for many years, the Euro is now almost on a par with the pound.
With the minimum of promotional effort, UK merchants can attract price-conscious EU consumers. In fact, UK SMEs saw their international sales rise by an incredible 34% in the last six months of 2016, three times the increase in the first half of the year, due to the exchange rate. If ever there was a time to feature the Union Jack accompanied by the words (suitably localised) ‘Brexit bargains’, in your promotions, it’s now.
That’s great, as far as it goes. Everyone wants extra trade even if we’re effectively selling at a discount. But it’s not sustainable and the continuation of this trend cannot be relied upon or taken for granted. At some point the pound will rebound or bargain hunters will revert to their previous shopping habits.