Brexit, finanza digitale e fintech: le nostre conclusioni (in Italian)

​British voters have expressed a willingness to leave the EU. The United Kingdom, part of the European Union since 1970, is now faced with a detachment to the European Union not simple. The UK and the EU must agree on a range of issues, including trade agreements, a possible common regulation and also for the freedom of movement of people. This certainly has an impact on financial services, including digital finance and Fintech.

At this point you can not make any detailed analysis, having no information about what will be in the future relations between the EU and the United Kingdom. We do not know what will be the negotiating objectives of the two interlocutors. In general, we can say that the new relationship could be inspired by models of Norway and Switzerland with the EU, up to the global model of the WTO.

The financial services based in the UK, who have been part of the EU internal market, including the 'passport' model to be able to offer services in every EU country, is unlikely to continue as we know them. This agreement is merely improbable, if (and when) the UK is not part of the EU. Grow Advisors, a company part of the Grow VC Group, in April has made an analysis on brexit, highlighting how key issues for Fintech companies: 1) how to offer services in the EU, 2) being able to have enough talented employees if the free movement of workers is removed, and 3) in particular the impact of the two previous questions for startups Fintech when they have fewer resources to manage regulations and work visas. The end of freedom of movement could also mean that European entrepreneurs, and would more difficult to move to London, could begin to prefer other places, including the United States.

'Capital Markets Union' was a new EU initiative to build a common market for capital within the European Union, to help provide financial services and to help European organizations facilitating capital raising. Of great importance for small and medium-sized enterprises (SMEs), facilitating the collection of capital and improving competitiveness at the global level. The City of London has been a strong supporter of this initiative, led by the British EU Commissioner Lord Hill, who has now decided to resign. The UK leaving the EU in all likelihood will not be part of the 'Capital Markets Union'.
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Having as Grow VC Group operations worldwide, we have always seen the United Kingdom and London as a major hub for the Fintech and finance in general. We have companies and people in the UK. The most complex part of the current situation is that we do not have any information about the new relationship that will be established between the United Kingdom and the European Union, with Scotland also hangs in the balance. What the EU is a very important market, the largest common market in the world made up of 500 million people, with digital finance and Fintech who really started to emerge.

That's why we plan to invest more in the EU market and start more operations within the same. At the same time we intend to increase our activities in the US markets and Asia.

A brief will be announced two new activities within the Grow VC Group. We are now in the final phase of the process for the selection of locations and jurisdictions for such operations. What we consider are: 1) markets, 2) regulations, 3) operating costs, 4) credibility of the country in terms of financial services, and 5) availability of talent. We think this is a process that now also many other financial companies are considering, and to the start of new activities, and for those already existing in the United Kingdom. We hope that the position of the UK, including the agreement with the EU, can be clarified as soon as possible. To do business there need stability and predictability. Our hope is to see the UK and London to play an important role in finance and Fintech in the future.