Nery Alaev writes about Fintech in Europe, post-Brexit.
Since Brexit (something I’ve written about extensively since the vote took place), there has been a jostle between London and Berlin for new control over the burgeoning ‘Fintech’ industry, which has gained serious momentum in recent years.
What is Fintech? In January I wrote about the industry, as well as its outlook for 2016. In short, Fintech is an industry comprised of companies that attempt to make financial processes more efficient and profitable with technology.
Subsequently, I’ve decided to look into the industry today and summarise on its future in Europe.
Competition on the Horizon
Earlier in July, an article from Finance Magnates pointed towards a bullish attitude from Berlin’s senior Fintech figures. One expert commented that “London has committed suicide as a leading fintech centre”, and the city’s own Economics Minister stated that:
“Berlin will exploit the opportunity provided by Brexit. These companies need to be in the heart of Europe, and where is better than the capital of Europe’s strongest economy?”
One good reason for the bullish nature of the Berlin experts is the sentiment of major start-up TransferWise, who according to Financial Times sources is considering a move to Berlin. Given the size and successful nature of TransferWise, it’s arrival in Berlin would be a major ‘scalp’ for the Germans and a blow for the UK’s industry.
UK still strong
Still, it’s wise to take into account that more recent articles have shown that there is still a sense of vibrancy in London’s Fintech scene. This statement comes from a series of recent investments made post-Brexit, pointed out by an article in Business Insider’s UK edition.
In summary, does this mean that the Fintech industry will remain in London? Time will tell, after all it has only been a month or so since the vote itself. In 12 months or maybe even six, I believe we’ll have a much clearer picture.
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.