TransferWise Ltd., a UK-based coin telephone substitution company, was late inward the tidings later its co-founder Taavet Hinrikus was quoted inward a Bloomberg Technology article every bit saying: “While we’re happily headquartered hither inward London, if I were setting upward TransferWise today I would non select London.”
Hinrikus was formerly the manager of strategy at Skype together with is an advisor to the Prime Minister of Republic of Estonia on digital agenda.
Has Brexit begun to touching on the thinking of Fintech firms close the viability of the UK every bit a hub? We got inward touching alongside TransferWise to notice out inward special close their thoughts close Brexit together with its probable impact.
Passporting rights
TransferWise was founded inward 2010 together with it began its operations inward 2011. The fellowship sees a 1 one one thousand thousand users each twenty-four hours occupation its services every bit they transportation £1 bln each month. According to TransferWise, their services help users relieve to a greater extent than than £1.5 mln each twenty-four hours compared alongside if they had used to a greater extent than or less other provider.
On the enquiry of whether the fellowship would movement out of London due to Brexit, TransferWise tells us:
“If the Britain loses passporting rights every bit a effect of Brexit, together with then inward guild to serve our customers, nosotros volition take away to larn licensed inward to a greater extent than or less other European province together with this agency nosotros would ready an operate there. London remains our global HQ.”
Brexit’s impact unknown
On the enquiry of what impact Brexit volition bring on the broader coin transfer business, a TransferWise spokesperson says:
“Two of the primary benefits of beingness a component subdivision of Europe for a Fintech trouble concern are passporting only to a greater extent than importantly the costless campaign of talent. We bring no sentiment even therefore what the impact of Brexit volition survive only losing those ii things are critical for a Fintech business.” The costless campaign of talent across borders is indeed an number that would take away sorting out post-Brexit.
Record yr for tech deals
According to a written report published yesteryear GP Bullhound, TransferWise is 1 of Europe’s fastest growing unicorns. Also, according to the same report, the Britain has the largest number of fastest growing unicorns, which are fast-growth, profitable businesses at eighteen alongside a cumulative value of $39.6 bln.
Despite the clouds of Brexit looming, British tech deals striking a high inward 2016 according to GP Bullhound. Whether the increase inward the tech sector tin give the sack survive maintained post-Brexit is an interesting question.
The Lord's Day Telegraph’s figures demo that at that spot has been a turn down inward the number of deals that were signed upward yesteryear the tech manufacture transportation service the June 23 referendum, alongside post-referendum deals coming inward at 1,583 together with pre-referendum at 2,426.
