The Fintech sector has called for a ‘frictionless’ Brexit deal for its sector, highlighting how this is in the best interests of both the UK and the EU.
The Prepaid International Forum (PIF), the not-for-profit trade association for the prepaid financial services sector, is advising Theresa May and the UK’s Brexit negotiators, that a scenario where barriers to trade are strictly enforced in the financial markets, especially in the fast-growing financial technology sector, is a ‘no-win’ game.
PIF points to the key role that the UK currently plays in the EU’s FinTech sector, in particular the prepaid financial services sector which is estimated to be worth £65 billion annually across the EU and UK.
The trade group highlights the concentration of skills and expertise in the UK which is currently seen as the gateway to Europe for US and other international FinTech businesses.
Alastair Graham, spokesperson for PIF, says:
“The UK has become the European capital of FinTech because of the size of its domestic market, a concentration of a highly skilled workforce and high quality regulation that supports innovation and growth.
“Removing financial passporting to the EU, that currently allows UK based businesses to access Europe and vice versa, will harm both parties.
“A pragmatic approach from both parties in the Brexit negation would not only protect jobs and the wider economy, but also ensure that the EU continues to benefit from the advances in innovative financial services and greater financial inclusion being driven by FinTech and prepaid sector businesses.”
PIF also believes that the UK should maintain the standardisation of regulatory standards post-Brexit.
Alastair Graham, spokesperson for PIF, continues:
“FinTech is an increasingly international sector, with the UK very much seen as a flag bearer of regulatory standards and consumer protection. Maintaining this role will require keeping at least the minimum standard regulation applied in other territories, including the EU.
“We call on the UK government to address passporting matters early on in the process to bring about clarity and safeguard business continuity.