What is a Fintech Visa and will it help UK fintech businesses? Read on to find out more…

January 2020 marked the end of the UK’s 47-year membership with the European Union, in a move which left a lot of UK business owners feeling unsettled; particularly within the fintech industry. Little did they know that, in just a couple of short months, a global pandemic would add further challenges into the mix. 

The UK’s departure from the European Union (or Brexit, as it’s commonly known), posed significant problems for fintech businesses hiring - or looking to hire - EU professionals. London immigration lawyers found themselves inundated with enquiries as a large number of fintech professionals faced an uncertain future in the United Kingdom. This was an incredibly worrying time; particularly for those who had built a life in Great Britain which included jobs, homes and families.

In this article, we’re going to explore how Brexit has affected immigration, and the solutions the government are implementing for the tech industry…

How Has Brexit Affected UK Immigration?

In the wake of Brexit, EU professionals living in the United Kingdom were required to apply to the UK Settlement Scheme for ‘settled status’ or ‘pre settled status’. As a result, over 200,000 EU employees left the UK - some of which would have been able to gain permission to stay, and others whose applications were declined, putting considerable pressure on fintech businesses who found themselves dangerously short staffed. The UK Government responded to this problem with plans for a ‘Fintech ‘Visa’ - but will it work?

What is the Fintech Visa?

The Fintech Visa or - to give it it’s fancier name - the Global Business Mobility Visa, is a kind of fast-track scheme for EU professionals who have received an offer of employment from a fintech business in the UK. The visa will allow EU professionals to live and work in the United Kingdom without having to find thirty party recommendations or sponsorships, thus making the process faster and considerably less complicated.

The introduction of the fintech visa came on the back of a Kalifa Review - an independent review on the UK fintech industry, conducted by Ron Kalifa, OBE. It highlighted urgency of the staffing issues within the UK fintech industry.

Will the Fintech Visa Work?

This is, of course, the million dollar (or pound, or Euro) question. A lot has happened since January 2020, including the COVID-19 pandemic, The Great Resignation, and considerable unrest within the UK Government; all of which has added up to a great deal of uncertainty:

The good news

Untangling the process of living and working in the UK will undoubtedly help some fintech companies to retain and attract the talent that they so desperately need. Michael Kent, Chairman of fintech firm, Azimo, says, ‘We welcome the budget’s announcement of a UK visa scheme to help fintech firms attract more global talent following Brexit. Executed well, this will assist in widening the pool of digital human capital we need to help rebuild our economy and to help maintain the robustness of our multi-billion pound fintech sector’. 

Many business owners, including Michael Kent, feel that the Fintech will be vital in helping them to remain competitive with similar businesses within the European Union, as well as giving them access to top fintech talent.

The bad news

While there are those, like Michael Kent, who welcome the fintech visa, there are others who feel that this simply doesn’t go far enough. During the Brexit process, a great many of the EU professionals who fled the UK have since settled in competing countries and may be reluctant to up sticks and relocate once again to the UK. Many of these professionals feel that their relationship with Great Britain was soured by the fact that Brexit made them feel unwelcome - sometimes after living and working in the UK for many years. 

A significant number of business owners, including Jed Rose, EMA Manager at Ainwallex, believe that, in light of the Kalifa Review, much more should be done to assist the fintech industry in the UK.  Jed says, ‘the budget should have had an even greater focus on its fintech initiatives. The government needs to act quickly to develop a unified strategy for the fintech community to appeal to fast growth companies. At a time when Brexit and COVID-19 have drastically altered the business landscape, the UK does not want to lose its position in the market’.

Although the Fintech Visa will most likely help with staffing, UK fintech companies still face considerable challenges in terms contracts, KYC and GDPR management. Many businesses feel that more assistance should be offered in these areas.

What’s the Future of the Fintech Industry Following Brexit?

Although some fintech business owners are optimistic about the Fintech Visa, there remains a level of uncertainty. The scheme is set to launch in spring 2022 and, yet, some details remain unclear - namely, whether or not a threshold will be kept at RQF Level 6, which is the existing requirement for ‘Intra Company Transfer’ (ICT) routes, which relate to employment roles which typically require a level of formal education, such as a degree, or if it will be opened up to a Skilled Worker threshold.

It’s clear that, in order for fintech businesses to have the confidence to back the scheme, there are a number of questions which will need answers in the very near future. One thing that is clear is that London Immigration Lawyers are likely to have their work cut out for them in the coming months in order to untangle the rules and regulations of the Global Mobility Visa.