According to business officials, the UK withdrawal in European Union is affecting the development of financial technology companies. Fintech zone settled new forms of online lending, such as crowdfunding and peer-to-peer lending, and apps for making payments and sending money overseas. Publicized by the government as key to generating new jobs and progress in financial assistance.
Managing director of crowdfunder Abundance Investment, Bruce Davis, said “UK voted to give up the EU, fintech was finding it harder to make its voice heard in government and Brussels”. The EU is presently revamping rules for how fintech firms set out knowledge for potential financiers. The ability of Britain to influence those rules has been hampered by the resignation of Briton Jonathan Hill, who quit his role as financial services commissioner due to the Brexit. Davis told a House of Lords committee, “what we discovered, specifically since Lord Hill’s left his duty in the commission, is that we have been shut out of those conversations, particularly around the development of the prospectus directive, which will have a direct impact on how our business is run”.
While Britain members of the European Parliament were shut out of meetings to finalize the rules, Germany which wants to attract fintech firms to Berlin from London was proving to be an ally in Brussels. Abundance Investment has a passport to offer its services across the EU, obtained by regulators like the Financial Conduct Authority (FCA) in Britain liaising with its peers in the EU.