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“The Exodus is Beginning” For UK Fintech Industry

Andrew Hamilton

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The UK must brace itself for an “exodus” of Fintech firms and a relegation of its status as a global-leader in talent, according to a chief executive from a leading company. The onset Brexit is causing increasing discomfort amongst firms in banking and e-lending who enjoy “passport” trading deals only granted to EU member states.

Simon Black, chief executive of the firm PPRO Group, claims, “Everyone is thinking about it and anyone that is any size, that is employing more than 10 people, is active. The exodus is beginning.”
The UK has established an international reputation as a leading player on the Fintech scene, with over a third of European Fintech investment concentrated on UK shores.

But there are growing fears from some in the industry that this reputation may be at risk. Black’s assertion comes just days after a report from job marketplace Hired revealed that salaries in the UK tech industry are lagging behind “more mature” markets, in the US for example.

Hired also warned that over one-quarter of the nation’s technology sector is reliant on foreign talent. The report claims that these opportunities are threatened by potentially more-restrictive immigration laws.

In a bid to pre-empt any skills shortages Tech City UK has been allowed to endorse 50 more applications for 2017. The “Tech City” form was delivered in 2014 to meet a shortage of skilled coders amongst industry start-ups.

The Home Office was likely to reach its annual limit of technology visas after approving more than 170 applications in the current financial year, which ends on April 6th. Chief executive of Tech UK Gerard Grech claims that the move could encourage European firms dissuaded by the possibility of restricted movement.

Mr. Grech claims, “The UK must demonstrate that it is open for business to the brightest and best around the world.”

Nick Freer, director of business advisory agency the Freer Consultancy, believes that Scotland’s Fintech firms could develop in a post-Brexit climate by competing or collaborating with bigger banks. Mr. Freer claims that many Scottish organisations demonstrated a lot of promise particularly in financial forecasting and data analytics.

Despite the uncertainty surrounding Brexit, Mr. Freer believes that healthy competition would blossom Scotland’s tech “ecosystem” and could even elevate it to an industry front-runner.

Andrew Hamilton

Andrew Hamilton

PR & Content Executive at Hutchinson Networks

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