Boris Johnson’s wants to leave the EU: How Brexit could affect the UK FinTech Sector
Boris Johnson’s stance on leaving the EU has surely swayed many British voters. Polls done before the news broke last night showed that his decision would account for 23% of undecided voters.
Now that someone of his political stature has weighed in on the debate I thought I would take this opportunity, especially as in it’s in the limelight, to show the wider ramifications of his decision for a Brexit on the UK FinTech Sector.
This year Contego Fraud Solutions, or Contego for short, is on the Accenture FinTech Innovation Lab a rigorous 12-week programme for the UK’s most promising FinTech Start-ups. A substantial majority of start-ups are not from the UK, in fact there mainly from countries dotted across Europe and even the globe.
In Harriet Baldwin’s post yesterday, she stated her desire to help the UK to retain its title or position at the top in FinTech. For this to be possible it needs to further strengthen its Financial Services and leaving the EU will make that near impossible.
The financial services sector, which employs about 2.1 million people in the UK, relies on the EU Internal Market legislation. To abandon this for an untried, unknown and unpredictable alternative would carry catastrophic consequences.
For Harriet Baldwin’s vision to come to pass, we need to create an environment conducive to economic growth and prosperity. This will be achieved depending on the kind of deal reached with the other EU nations.
If Britain leaves the EU, Britons may have to apply for visas to enter EU countries, restricting access to the BEST talent abroad. This is crucial for UK FinTech companies, but also European FinTech companies who want to recruit from the UK.
Britons already living in other parts of Europe may face integration rules, such as proving they can speak the language before gaining long-term residency rights, making it hard for those who are not multilingual. There would also be uncertainty for many EU workers now paying taxes in the UK — what benefits, if any, would they be entitled to? What incentive would they have to stay if they get limited benefits?