While Brexit vote hasn’t led to a mass exit as some political leaders and academicians predicted, Brexit will still leave a considerably negative impact on London’s key industries. Especially if UK and EU entered into a no-deal.
Approximately 25.5 billion pounds of higher tariffs are anticipated to drop on UK’s five segments – agriculture (food and drink), consumer goods, chemicals & plastics, automotive and financial services. London dominates the financial industry of UK (50% of the UK’s revenue from this sector is from London).
Can London remain a world financial centre in future? Apprehensions about higher operational expenses for enterprises in the UK while wanting to retain passporting rights in the European Union make it doubtful. However, Fintech is one arena untouched by the post-Brexit fear.
London witnessed a 421 million pound investment in Fintech in the first quarter of 2017. This when Berlin (tied second) could manage only Rs. 140 million pounds.
Fintech hubs in EU that can give London a run for its money
Sofia, Bulgaria – Encouraged by the rise of numerous Bulgarian startups on international front (like Telerik software company sold for 262.5 million USD in 2015), they have become quite startup-friendly. Bulgaria levies the lowest tax rates in EU.
Tallinn, Estonia – Home to more than 400 Fintech startups (like Skype, TransferWise). In 2014, it established an e-Residency program to offer electronic residency to foreigners to boost its Fintech sector. They also have a slew of policies like Enterprise Estonia Agency and Startup Estonia Policy to access funding as well as build local and global networks.
Lisbon, Portugal – The city has a high rate of female company founders in Europe. Aside from job security and better income, the city has the smallest gender pay-scale gap thanks to their admin policies like the Fifth National Plan for Equality – Gender, Citizenship and Non-Discrimination.