Britain’s departure from the EU has so far provoked more challenges as opportunities for the country’s financial sector. Boris Johnson’s government has failed to ensure that financial services are an integral part of Brexit negotiations and the ensuing trade deal. The result has been a trickle of business away from the city of London, with the fear that it will become a constant stream. As hopes for a free trade agreement in financial services with Brussels fade, the Square Mile urgently needs to think about new ways to maintain its preeminence as a financial center.
One obvious avenue is Britain’s burgeoning financial technology, or fintech, sector. The UK has a strong track record of building and promoting these businesses – fintech contributes £ 11bn to the economy – but it could do a lot more. Brexit gives UK chance to change financial regulations to stabilize more attractive to fintech entrepreneurs and corporate capital. In doing so, he would lead the battles of tomorrow, rather than fighting to preserve some former glory.
A government-commissioned report by Ron Kalifa, former CEO of Worldpay, presented a series of proposals aimed at triggering a “digital big bang”. The five-point plan covers areas such as regulation, investment and skills. Some of the recommendations are both common sense and overdue. Among these is the creation of a technology visa to allow access to global talent. One of the concerns of the industry …
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