The EU and the UK are learning to walk alone as the former created an ad hoc task force to support the development of the sector as of next year and the latter formed a group of entrepreneurs which landed in Singapore in the context of the British government’s post-Brexit outreach strategy as to not lose the global leadership in the industry.
More in particular, the EU commission announced an internal task force meant to propose recommendations for financial technology firms early next year, taking a first step towards assessing the risks and rewards presented by a sector that is shaking up traditional banking, Reuters reports.
According to experts, this is a strong sign of support as technological innovation in finance is a development to be encouraged by the European commissioners.
Meanwhile, the UK’s fintech sector is waiting nervously for the Brexit outcome as fintech produces more billion-dollar-valued startups than any other segment in the UK, Newsweek says, as a mission organized by the UK Department for International Trade, one of two new bodies set up by Theresa May to handle the UK’s post-Brexit future, headed to Singapore bringing in town nine companies from Britain’s booming fintech industry.
The rationale behind this move is that the risk of ending the free movement of people from Europe could threaten the “passporting” rights that allow British financial services businesses to play their trade throughout the biggest market in the world, which still remains the European one.