New research shows that 50% of FinTech executives are sceptical about launching in the UK because of Brexit.
At the same time, even though the UK’s divorce from the EU and the coronavirus pandemic have made FinTechs more cautious, 68% of the 50 FinTech executives polled plan to expand internationally in the next 18 months, according to new research from Newfound.
“The FinTech industry was forged in the 2008 financial crisis, and it is no surprise that the sector is resilient and optimistic in the wake of macroeconomic events like Brexit and Covid,” said Peter Gillingwater, CEO, Newfound.
“It is promising to see so many firms are looking to expand over the next 18 months. The sector is emerging strong after a turbulent year which bodes well for the European fintech market. However, growth may be slower than pre-pandemic levels and FinTechs are asking for more support from the government and industry to give them the best chance of success.”
Moreover, four out of five FinTech executives also said that they found sourcing talent to be a challenge and 80% had that the sector suffers from limited availability of funding.
Several industry bodies and one UK parliamentary group have called for more support from the government during the pandemic.
The research echoes these concerns, with 68% saying that the government could do more to support international firms. And 42% said that tax breaks and support programmes that make it easier to plan expansion, could help make the UK a more attractive destination for global FinTechs.
Previous research has shown that 83% of financial leaders across Europe believe that Brexit should be delayed until after Covid-19 has been dealt with.
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