For FinTech, where the U.K. has been at the forefront of technology and innovation, with the wholesale backing of the government, the problems would start almost immediately, once an exit is actually engineered. The industry would be essentially confined to its home shores, with an interruption of flow between the island and the continent. The membership within the EU is essentially a level field wherein FinTechs can morph from startups to full-fledged businesses with a market ready to embrace new wrinkles on old themes (that would be payments, and in particular, faster payments). The confines of FinTech in this scenario (that is to say U.K. FinTech) would limit small firms to the payments systems that are used within the U.K., in essence creating a “reverse moat” that keeps firms from successfully interacting with other nations – after all, wouldn’t it make sense that trade would be at least somewhat truncated?
For more on this story visit the following link: Brexit A Thorn In FinTech’s Side?