Post-Brexit, Innovation is Anything But Business As Usual
Authored by: Adam Borowski, Consultant, Business and Management Consultancy
The Single Market and its ‘Four Freedoms’:
The European Union’s Single Market has fuelled economic growth across member-states since its inception. What’s more, it’s provided an environment for innovative and entrepreneurial behaviours to thrive through its ‘Four Freedoms’. More specifically; the free movement of capital has eased financial constraints on FinTech by making venture capital more abundant. The free movement of labour across the EU has enlarged the talent pool of skilled workers FinTech’s can recruit from. And finally, the free movement of goods and services; a benefit received through ‘passporting’ has expanded the market FinTech’s can serve.
How much FinTech will be affected by the UK’s withdrawal from the EU will largely depend on how beneficial these ‘Four Freedoms’ are perceived to be. London is not unrivalled as a European FinTech hub; low corporation taxes and a progressive regulatory regime have evolved transforming Dublin into a popular FinTech location. If FinTechs value the ‘Four Freedoms’ more than anything else they may choose Dublin as a viable alternative location.
Brexit has caused a significant disruption to ‘business as usual’ for financial services, forcing large incumbent institutions to revise their organisational structures and business strategy. In response to these challenges; FinTechs have proven to be a valuable collaborative partner, offering dynamic and agile solutions to the complex business problems