New data reveals 430% increase in foreign businesses opening UK accounts

Despite fears the UK would lose its position as one of the most attractive places for foreign businesses to invest post-Brexit, new data from UK bank challenger 3S Money reveals this couldn’t be further from the truth. ,

The data reveals that between 2019 and 2020, the Fintech scaleup saw a 322% increase in non-UK businesses looking to open a local UK IBAN account. This growth continued following the UK’s official break from the European Union on 31 January 2020. In the last 12 months alone, 3S Money has seen a 108% increase in non-UK businesses setting up accounts.

Two years since Brexit, there’s been a significant uptick in foreign businesses still looking to trade in the UK – foreign investment created over fifty-thousand new jobs in the UK last year.

Commenting on the data, Ivan Zhiznevskiy, CEO, 3S Money suggests, “Brexit was one of the most uncertain economic milestones in British history. And ‘uncertain' is a word no investor wants to hear. Yet, despite fears we’d lost foreign investment because of this, the UK still presents an extremely attractive business opportunity, especially for high-tech start-ups – 2021 was the best year ever for UK’s tech sector in terms of investment."

The data also found the nationalities most keen to invest in the UK since Brexit include: the United Arab Emirates, Russia, Turkey, Cyprus, and Israel.

Sam Cox, CEO, Fivefour Engineering Services comments, “The biggest challenge to trading in the EU has been arranging bank accounts for non-EU organisations. To sponsor a non-EU national for immigration and visa applications, you need to prove the business is financially stable – that requires a bank account. The red tape involved in getting an EU bank account isn’t ideal for the fast-paced construction industry we operate in.

“Amid Covid-19, establishing our business in Sweden with a solid UK base is the best decision we have made as a business. The UK’s banking infrastructure continues to be the most entrepreneur-friendly in Europe and has been the most solid base from which to trade with the EU.”

Ivan continues, “Financial inclusion and accessibility are the two main drivers for non-UK businesses choosing to do business in the UK. Despite Brexit, London remains the most multicultural city in Europe. Looking at the nationalities trending in the data – the UAE, Russia, Turkey, and Israel – their experience of doing business in the UK versus Europe will be very different. In London, it’s possible to be taken seriously as an outsider, but try phoning an EU bank and speaking with a non-native accent. Added to this, the UK’s banking infrastructure and legal system promotes far greater entrepreneurialism, access and opportunity.”

3S Money connects businesses in 190 countries to customers globally by providing them with local business accounts to send and receive funds through all major payment rails. After launching in the UK, 3S Money now also provides local GB, NL, LU, DE, DK, and US accounts.