How the UK set itself the goal of becoming a Fintech haven in the wake of Brexit

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Significant policy changes and a reform of London's company registration regime following Brexit are set to trigger a 'digital big bang' in the UK in a bid to accelerate the growth of the tech industry within the country - according to a recent government report - commissioned review.

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The report, published in February 2021, highlights that regulatory uncertainty from Brexit and growing global competition could undermine the UK's position as a leader in the world of fintech if no action is taken taken.

The review was carried out by former Worldpay chief Ron Kalifa and is part of a number of government-commissioned projects to help boost the UK's standing in the world of finance and technology.

As things stand, the UK is a European leader in terms of the number of companies operating in fintech and the launch of new fintech companies. However, complications stemming from Brexit could see the UK lose ground to countries like Germany and France as one of the world's favorite destinations to establish a fintech business.

Finance and technology sectors have come under greater pressure from rivals since the UK left the European Union in early 2021, but Brexit may offer some more freedom to convert the nation into an even more appetizing prospect to retain and build on the support of the developing fintech industry.

With global fintech revenues expected to reach over $300 billion by 2022, there is good reason for the UK to prioritize its fintech industry as a key area for retain businesses and strive to attract young companies. Let's take a closer look at how the UK is looking to capitalize on the growing fintech market in the wake of Brexit.

Passport to Fintech.

The UK government will use a visa scheme for fintech professionals in a bid to fill emerging gaps in the sector's workforce following Brexit, leading to loss of access to the important EU skills base.

The move has already been welcomed by the fintech industry, where many players were concerned about access to skilled workers before the Brexit process concluded.

According to a Sunday Telegraph report, Chancellor Rishi Sunak will soon announce a plan to help the UK fintech sector retain the talent it needs to continue to be a global industry leader.

It is hoped that the fintech visa scheme will help the UK maintain its place as a thriving place for fintech unicorns to flourish. After leaving the EU, the UK lost its automatic right for professionals from all over Europe to work in the country. At the same time, many skilled European workers have left the UK due to the climate of uncertainty and negativity caused by Brexit.

With global competition for fintech talent in the sector, cities like London are facing new competition from European destinations like Berlin, Barcelona and Amsterdam, which are becoming increasingly popular for fintech professionals with the right to work throughout the EU.

This exodus is exactly what the UK is seeking to prevent, and the danger posed by the situation was highlighted by Ricky Knox, CEO of fintech bank Tandem, who said: "Tech visas are a good thing and essential if we are going to keep a competitive tech and fintech sector," he added. "More than half of our coders come from outside the UK and some have already left due to Brexit."< /p> Room to accommodate crypto.

Another aspect of the review called on the UK to review its approach to crypto-asset regulation in order to welcome more fintech companies in the future.

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