All major financial hubs – UK, US, Singapore, Hong Kong, etc. have robust, developed fintech companies that compete with the best in the World. With the exit of UK from the EU, no EU country can boast of the same. In-fact, the EU is far behind other countries when it comes to fintech support for major financial houses. This is said to be the major reason for the EU to have gone into a panic mode after Brexit. No major financial behemoth will stick around if they don’t have fintech infrastructure to conduct business on. Many banks are planning to open offices in UK as the fintech infrastructure won’t be available easily with it out of the EU.
In order to address this, the EU is trying to attract talent and companies to its shores. It plans to create a system which will allow Fintech companies to operate in all 28 EU countries on a single license. The Fintech companies shall be given exemptions when it comes to regulations. The EU will be following a sandbox system, wherein normal rules will not apply to these companies. They will only have to follow a few basic rules that apply to the country that they are located in.
Apart from the advantage of having major fintech companies located in EU, the EU also learns about the requirements, advantages and risks involved as they are considerably inexperienced about the industry. A great time for Indian Fintech startups and professionals to look for expanding their horizons.