Ardent Remainers who are predicting doom and gloom for the UK economy, regardless of the outcome of the current negotiations, have failed to account for the innate qualities of the country’s financial sector. Astute, agile and supremely confident in taking risks in the face of adversity, it has a fine tradition of identifying opportunities, enabling the UK to continually lead the field in financial innovation and investment. Far from being a deterrent, the prospect of independence following the conclusion of Brexit, has appeared to excite and infuse the FinTech establishment with a renewed vigour. Already there is conclusive proof of the sector’s buoyancy.
Since the Brexit Referendum, the FinTech sector has received a record breaking £9 billion of investment, enabling the UK to outperform its closest European rivals. Statistics released by market analysts, Fintech Global, reveal the UK’s investments of 2017 have tripled compared to the previous year. Brexit has not instigated a predicted mass exodus of businesses. In fact, the position is decidedly the reverse. Venture capital has doubled with huge investments in technology companies such as Monzo, a rising challenger bank. Truelayer, an innovative developer of APIs (Application Programming Interfaces) has attracted £2 million of investment.
The frenetic FinTech activity in the UK following the start of Brexit negotiations indicate the brightest future ahead. As the UK dominates European financial hubs, there are expectations that 2018 will produce some of the largest FinTech deals on record. There are even signs that the City of London could outperform New York. Even though no one knows as yet exactly what form the Brexit deal will take, the evidence cannot be clearer that investment in the UK’s FinTech companies has never been so buoyant.