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Industry survey spotlights UK FinTech’s preparations for Brexit

A new survey is released today by Innovate Finance, the industry body that represents the UK’s FinTech sector, has shown that finyech firms in the UK are getting on with business as usual, despite the ongoing uncertainty surrounding Brexit.

The survey provides insight to how the fastest-growing sector of the economy is preparing to exit from the European Union.

Key findings from the report show that 55% of the UK fintech community feels prepared to leave the EU with a transition period.

Over a third (38 per cent) of companies have not yet taken any additional steps to prepare. Of those that have gone through additional preparation, this has included reviewing data processing, safeguarding the talent pipeline and undertaking risk management procedures.

And in the case of a no-deal Brexit scenario, fewer than a quarter (22 per cent) of businesses surveyed feel confident they are prepared. FinTech companies have stressed passporting, cross-border transactions, servicing EU clients & retaining/attracting new talent as the areas Brexit will affect the most.

The vast majority of fintech companies are small in size, and like many SMEs around the country, are not as prepared as large financial services institutions. Goalposts and timings keep changing, making it very difficult and costly for them to plan.

While Brexit is a risk, it is somewhat mitigated by their ability to act quickly and pivot. That said, FinTech companies are clearly eager for Brexit to be delivered without a cliff-edge scenario that will put their prospects in flux.

Charlotte Crosswell, CEO of Innovate Finance, said: “At this time of rapid growth in the UK’s FinTech sector, which is at the heart of the future prosperity of the UK economy and innovation, we would prefer our members to be focussing on their businesses, scaling up to conquer new markets, at home and internationally.

“Hearing directly from the industry and amplifying its message to Government is a vital step to ensuring ongoing growth for fintech. Businesses must take the lead to make sure our FinTech sector remains strong. Now is the time to avoid complacency, further strengthen our position and support the sector’s growth.”

Alok Prasad, Deputy CEO & COO of OakNorth Bank, added: “At OakNorth we pay close attention to factors that may impact the bank and our customers. Given that our business model focuses on lending to SMEs and longer-term consumer savings, we expect the impact of no-deal Brexit to be limited.

“However, we have sufficient liquidity at the Bank to address the uncertainty. We intend to very closely monitor the news, markets, social media and other information to be fully aware of potential impacts of a no-deal Brexit.