Cue for FinTech Companies to Leave the UK

Cue for FinTech Companies to Leave the UK

Simon Black

CEO at PPRO Group

Views 341

Cue for FinTech Companies to Leave the UK

24.06.2016 11:15 am

The UK, led by London, has rapidly become a global centre for Financial Technology innovation. With an estimated 500 FinTech companies in the UK, Brexit will cost the taxman around five billion pounds* over the course of the next ten years, following the inevitable exit of the FinTech companies themselves. As well as London being a global financial hub, the UK offers specific regulatory benefits, that when combined with a massive pool of talent have made the UK the natural choice to be located both from a European perspective and for some companies, even as a global base. But with their status as financial institutions recognised across the EU and EEA under threat, all of these businesses will not wait for trade deals to be resolved. They will immediately begin forming plans to relocate at least some of their operations, and the majority of new jobs will be outside of the UK.

The likely FinTech winners would be Amsterdam, Dublin and Luxemburg; all cities that already boast a progressive regulatory environment, significant tax advantages, and international talent pools. Dublin would probably benefit most within Europe: It has a big tech scene, taxes are particularly low with a 12% corporate rate and major FinTech companies such as MasterCard, Apple, PayPal and First Data already have significant operations there providing critical mass.

In the UK, we now face years of uncertainty in the market. However, my advice would be to keep calm and carry on. Nothing will change for at least two years and all arrangements on a European level will work as they have until now. As with other FinTech businesses, PPRO Group will make sure to support our partners during this time of transition and uncertainty. We have planned for a Brexit to happen and there won’t be any disruption to our business and support for our partners and customers. We will make sure that we can all navigate any hurdles that might come up over the next few months as details of the Brexit are ironed out.

*estimated 500 FinTech companies averaging 25 million GBP revenue and a profit of 5 million GBP, paying 20% tax = five billion GBP over the next ten years.

Latest blogs

N/A ReliaMax

College Dreams? Here’s How to Get Accepted

Higher education in the United States is not just about getting accepted, it is about where you get accepted. Sure, there are options, there are seemingly endless options - from community colleges to Ivy League schools and everything in between. The Read more »

Bobby Gill GCWealth

Bobby Gill: 3 Ways Fintech is Helping Small Businesses During the Pandemic

Image Source: Pixabay. Back in April, the US oil prices sank to a 20-year low. In the UK, road traffic levels hit a 70-year low. Worldwide, due to lockdown, retail, travel, and restaurant bookings have dropped by 85%. More than 430 million Read more »

Christa Ardley Bitstocks

Bitcoin and blockchain without the b******t

An industry once viewed by the general populace as a haven for criminals and online scammers, and still somewhat marred by fractious in-fighting, Bitcoin and blockchain are gradually casting off their outdated negative reputation; as the focus Read more »

Otabek Nuritdinov Safenetpay

Beyond Payments Services

    Why it really matters for small for medium-sized enterprise (SMEs) to choose the right payments services provider. Strategic planners in the financial services sector often define their business in terms of products that Read more »

Chak Kolli DXC Technology

How Can Insurers Realise the True Value of AI?

As Artificial Intelligence (AI) and digital transformation find their way into every aspect of our daily lives, we are gradually seeing changes taking place in different sectors. Progressively, AI is permeating the insurance value chain and it is Read more »

Related Blogs

Bobby Gill GCWealth
Christian Wiens Getsafe

Why Challenger Insurers Are Doing Better Than Challenger Banks During the Coronavirus Crisis?

The 2009/10 financial crisis hit insurers much less than banks. Challenger banks such as Monzo, Revolut, Starling Bank and N26 took advantage of the increasing scepticism and dissatisfaction of customers. With their promise of "no bullshit banking" Read more »

Shaun Puckrin Global Processing Services (GPS)

Balancing Innovation and Regulation: FinTech Trends and Challenges

The financial services industry has been ruled by traditional banks for decades, but with the financial crash in 2008, regulation and microinspection paved the way for younger and more innovative competitors, leading to a new era of challenger banks Read more »

Liam Huxley Cassini Systems

Cassini Commentary: UMR Implementation One-Year Delay

As our clients and firms across the buy side begin to process the recent BCBS and IOSCO recommendation to delay by one year the implementation of phases 5 and 6 of the uncleared margin rules (UMR), we wanted to share why Cassini Systems supports Read more »

Huw Kwon Cognizant

Entity v process: The collective power of AI

Most, if not all, financial institutions are exploring how the range of new and emerging technologies collectively known as artificial intelligence (AI) can improve their performance across a range of activities and processes.  AI offers methods and Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel