Days before the second anniversary of the EU Referendum vote, UK International Trade Secretary Dr Liam Fox launched an initiative that aims to bring together academics, experts and businesses and in turn, attract investment into the fintech sector.
This came after Prime Minister Theresa May’s announcement that more than 1,600 jobs will be created in addition to the £2.3 billion ($3bn) of private investment into the technology industry as a whole, as an attempt to showcase the UK as the best country in the world to run tech.
Dr Liam Fox MP said: “The UK is a world leader in the FinTech sector, thanks to our highly-skilled and creative workforce, fair regulatory system and ease of doing business.”
He continued: “The sector has already attracted £1.8 billion ($2.4bn) worth of investment in 2017 – a 153% increase on the previous year and as an international economic department, DIT [Department for International Trade] is putting technology and innovation at the heart of the UK’s global growth.”
So, has Brexit increased or decreased investment into UK fintech and is the UK government being forced to channel the country’s own cash into the financial and technology industries after a lack of funding from other countries?
In March 2017, the aftermath, or afterglow, of the decision to leave the European Union started to occur with Deutsche Bank announcing that it would be committing to a new office in London. Ahead of the Article 50 trigger date, this decision was particularly poignant during a time in which many financial institutions were contemplating moving out of the UK.
Rumored to have entered into a 25 year lease on a new building, the German bank’s UK CEO Garth Ritchie said at the time that this plan “underlines the bank’s commitment to the City of London”. This was thought to be the first of many other traditional banks setting up in the UK capital and in turn, minimize the impact Brexit will have on London fintech.