Brexit: what impacts for FinTechs in Europe?

by bold-lichterman

If the British choose Brexit, the UK will suffer, and Europe too.This is how Taavet Hinrikus, co-founder and CEO of TransferWise, one of the most promising FinTechs in Europe, concluded his speech at MoneyConf in Spain the day before yesterday.

Hangovers for UK FinTechs

48 hours later, the start-ups that are revolutionizing finance in the Queen’s countries, fearing Brexit by more than 80%, wake up with a number of new challenges to face:

  • An obvious obstacle to Europeanization : indeed, the main challenge will now be regulatory. UK start-ups will have to face new regulatory issues, open subsidiaries, obtain new approvals… thus requiring new costly and time-consuming investments. Contrary to a Lean and efficient approach. British FinTechs could, as Philippe Gelis, CEO of Kantox at MoneyConf recalled, need new headquarters in other countries of the European Union.
  • From a macroeconomic point of view, a volatile, uncertain and complex context can do no good in this market, already particularly cryptic. The reactions of the markets on Friday morning would only be the beginnings of chain reactions feared by the British CEOs who voted the Bremain.

  • Finally, the domino effect is widely feared, particularly in the countries of Northern and Central Europe.

The end of London’s reign over the European FinTech empire… a place for Paris to take?

Place de Paris now intends to “assert its strengthsTo attract international business.

Minister of Finance Michel Sapin thus wishes to make Paris “the benchmark for the euro zone“For the market financing of companies of”so-called smart finance», In other words green finance, socially responsible investments or the financing of infrastructure projects. “Everyone must find suitable and efficient financing in Paris», He indicated.

The Minister thus wished to recall the importance of the development in Paris of FinTech and “technological initiatives by dialogue with new entrants, by actively identifying any unjustified regulatory limits“. Bercy wants the Parisian financial center to provide “to businesses and financial intermediaries the most efficient market infrastructures and support functions possible“.

An opportunity for France to attract new talent and take first place in London?
Already last week, France FinTech, the association of “the most beautiful French FinTechs” launched a recruitment campaign. An English-speaking campaign.

Lea veran Youngest ESSEC Grande Ecole graduate, entrepreneurship major, Lea veran is the first employee to join Finexkap alongside its co-founders Arthur de Catheu and Cédric Teissier. After having gone through the School of Entrepreneurs, Rocket Internet, as Director of Operations of Zalora Malaysia, and various experiences in private equity finance, she held the position of Marketing Director of the first non-bank financing platform in France , Finexkap.

Passionate about FinTech, she created and chaired the Women In Fintech association in June 2014, bringing together a community of talents in finance & technology.

Photo credit: Fotolia, royalty-free stock images, vectors and videos

On Brexit:

Brexit: a danger for e-commerce?

Brexit: French digital entrepreneurs and VCs facing leaving the EU