To stay at the top in financial technology, London has to compete with other huge cities like San Francisco, Hong Kong, and Berlin. A strong desire to success, Finance Minister George Osborne’s interpretation.
The election on British participation in the EU is approaching Troubled manufacturing is afraid that London will lose strength and its influence for innovation if UK has to settle again its trading partnership with the EU or deal with economic fallout from an “out” vote. Reuters interviewed 10 London based companies These companies said “Brexit” (British exit from EU) was a genuine burden for their business. Eileen Burbidge, from Passion Capital, said “I don’t think there’s a contingency plan which is part of my concern”. Passion Capital a venture capital firm backed by corporate information company DueDil, Coinfloor, and GoCardless.
Burbidge is is a chairwoman of government agency Tech City UK and the British Treasury’s envoy for financial technology. She added by saying “I think there would be a bit of a reset of people, offices, HQ’s, and activities if UK were to leave EU. Collecting 6.6 billion pounds in revenue, Britain’s financial technology was the biggest in the world last year beating New York and California, according to report by accounting firm EU commissioned. More people work in Fintech Britain compared to Singapore, Hong Kong, Germany and Australia combined. The Report said, last year investors put in over $700 million into British financial technology, inspired by accommodating regulation and the comfort of making business in other European markets from London. 82 % of firms wanted UK to remain in the EU, concluding Brexit would be trouble and detach London from the vast industry. CEO of real estate crowdfunding platform Property Partner Dan Gandesha said, “Would there be a flight of capital out of UK? Would investors be frightened? All of it is so unclear that it’s dangerous”.
Firms whose business models dependent on being part of the EU are specifically anxious. Monese, which provides European immigrants to Britain with bank accounts “in minutes” via a mobile app, has begun thinking of post-Brexit options as the number of migrants could cause to diminish abruptly. Mulenga Agley, Vice President of Monese, told Reuters “We would rather it didn’t happen” She said the company might determine to shift its main business from UK to Europe and focus on clients moving to and within the continent. A company like Currency Cloud will stay in Britain and other firms like Japan’s Rakuten and Sapphire Ventures. Other firms expect Brexit to bother operations, but not adequate to make them transfer.