OPINION | Economic Outlook
THE MARCUS GIBSON COLUMN
Why the loud complaints from London’s fintech sector over Brexit aren’t really justified
O
f all the industries that have expressed concern over the impact of the UK’s exit from the EU, the complaints from the finance and fintech
sectors have been the loudest. In truth, it is increasingly doubtful that any of these are truly justified. While it is true that many greedy currency traders worldwide have spied a weak spot in the Pound Sterling, resulting in a 20% fall in its current value, the vast majority of the much-forecast problems are never likely to occur. Most recently, the youthful fintech
sector in London has been screaming incessantly that Brexit and ‘the future ban on foreign workers’ will crucify their companies. This is nonsense. Under Brexit the UK will most likely propose a visa system on essential workers in exactly the
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same way that skilled workers are selected in nearly all of the world’s advanced nations: the US, Australia and Canada. As there are only 3,000 companies in
London’s fintech community anyway, and most employ less than six staff, the only limitation will be on their foreign staff’s access to future UK benefits, pensions and free healthcare. Finally, their threat to move their companies to Paris and Frankfurt rings hollow. Most obviously, all of the clients are located in London, and very few in Europe, which is why the sector grew up in London in the first place. On average around 15-20% of fintech
staff in London companies are foreign born – hardly the critical number many executives are apt to claim. Around the UK there are many thousands of young workers desperate for a job, or
some training. How much training do fintech firms undertake compared with engineering and industrial companies? Answer: very little. Furthermore, most big London firms utilise soſtware teams based in the Baltic states, eastern Europe, India and Sri Lanka, and do so very successfully. It should be pointed out that the track
record of success for these fintech firms is wholly unimpressive. As of the summer of 2016 I believe only one London fintech firm has gone on to the AIM market – whereas dozens of traditional IT and soſtware firms have successfully launched on AIM. Worse still, only a handful of the startups that have ‘graduated’ from London’s numerous ‘incubators’ have achieved anything more than mere survival. While the fintech sector was showered with praise and attention by
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