It’s a stampede. While Theresa May promises to listen to business over Brexit, Scotland’s Sturgeon prepares for early UK election ahead of Brexit, and a new survey by Bank of England finds more firms expect Brexit to hurt their sales, the number of companies leaving the Country amidst increasing uncertainties grows.
The trend though is beginning to hurt London’s FinTech global leadership as, earlier today, a leading global FinTech holding company such as Grow VC Group announced they are going to move their European office from London to Zurich on July 1, 2018.
— Jouko Ahvenainen (@jahven) June 28, 2018
Brexit has an impact on the decision. We prefer places that are open for international business, able to offer a stable international environment and have well educated technology talent pools. FinTech is more and more based on advanced technology and data which can be challenge for London, where competence is deeper in finance instruments than disrupting the industry with technology.
FinTech business is growing rapidly in the whole of Europe. Switzerland has a good central location in Europe, excellent global connections and strong reputation and business in finance, a press release by the company states.
We see Switzerland as an excellent location for finance business in Europe, especially when our companies have more business also in German speaking countries, France, Spain and Italy. We have also seen Switzerland develop to adapt new innovative finance models, including blockchain and crypto finance.
Commenting on the specific impact on Brexit he claims:
Brexit has more practical influence on our operative companies than the holding company.
The release goes:
Grow VC Group’s operative companies are also conducting their own evaluations about best locations in Europe and will announce more about their office locations later in this year. The Group sees growth around Europe at the moment, when also more traditional finance institutions have started transitions to new technologies and services. Outside Europe the Group sees growth especially in emerging markets, where many people have been outside financial services and now they transition directly to use new services. The Group’s companies have made new significant contracts, for example, in Vietnam and Indonesia most recently.
In other words, it’s the elephant in the room.