In the wake of the Brexit, European financial hubs are competing to attract London-based firms looking to relocate in order to ensure the stability of their operations. If the true impact of the Brexit on the Fintech sector cannot be accurately predicted at this point, actors like money-transfer and payment companies might be tempted to move from London to another European city, which could guarantee a more stable political environment.
In the words of Valérie Pécresse, President of the Ile de France Region (in which Paris and the financial district of La Défense are located): “The sensible choice [for businesses] is not to stay in a land that could leave Europe one day, but to make a choice to invest long term in a land that will always stay in Europe.”
Consequently, countries all over Europe aim to attract talents and businesses seeking a more stable footing within the European Single Market. Paris doesn’t always naturally comes to mind as a potential Fintech hub; which is why French government agencies have already decided to publish leaflets listing reasons to choose Paris as a base for companies looking to enter the European market. For instance underlining the fact that “four French banks feature in Europe’s top 10, including two of the top three”, or that “the Paris metropolitan area is home to 12,000 startups”. And indeed, the Paris region is home to nearly 100 business incubators, including Le Cargo, Europe’s largest. Even bigger, the Halle Freyssinet is a structure set to open in January 2017, and that will be able to host up to 1,000 startups.
Despite relatively heavy operating costs, Paris is centrally located and has a well-connected infrastructure; and in its quest to claim London’s Fintech crown, Paris should be able to rely on the credibility of its financial services and the availability of talented employees. Overall, the Parisian financial marketplace is (self) described as “up to speed with new ways of financing SMEs, including private equity and crowdfunding”.
However, only time will tell if France will be able to attract London Fintech firms: other countries like Ireland (with Dublin) and Germany (Frankfurt & Berlin) are also pursuing a similar objective - the strengths and specificities of their respective financial places making them serious contenders to the Fintech crown.
Read the whole article on Crowd Valley News.
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