In advice published in it’s online resource, PwC has insisted that the UK’s pre-eminence in the fintech sector is unlikely to change:
It’s also important to stress that London’s pre-eminence in the FinTech space is the result of a number of disparate factors, many of which are unaffected by Brexit. The UK has always encouraged innovation and Innovate Finance believe that “Critical to this has been a forward thinking, open and collaborative regulatory regime driven by the FCA”. The fact that London is home to such a large concentration of financial services businesses and technology companies, in close proximity to one another, is also a natural advantage.
In fact, the UK’s FinTech sector has continued to progress since the Brexit vote. Some examples include the London FinTech “bridges” forged with China, South Korea, Singapore, India and Australia. Japanese firm Softbank, meanwhile, has said the headquarters for its £80bn technology investment fund will be located in London, which is an encouraging sign for investment.
In short, while Brexit has given FinTech companies and the broader investment community pause for thought, progress has continued since the referendum. There will be uncertainty in Europe whilst negotiations develop in the years to come, but we will see continued support from the regulator to encourage innovation and even if we see loss of investment and talent from the European region, this can be compensated by other territories, such as Asia, coming to the UK. London will still remain a global capital of FinTech, but we my might see its growth compared to other regions slow down.