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Some Brexit realness at play here… 200.000 customers will lose their bank account in two months theguardian.com/business/2020/feb/11/german-digital-bank-n26-pulls-out-of-uk-blaming-brexit I also wonder how many British fintechs will have to leave the EU market for similar reasons. I guess Brexit is a huge drawback for this sector in the UK… t.co/BaiH9IjiZkPermalink
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For people outside the EU: any financial institution authorized in a given EU country can do business everywhere else (it’s called passporting) Because of Brexit, and depending on what will be negotiated between the UK and the EU, British financial institutions can lose this
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N26 (which operates under a German banking license) would have had to apply for a UK license, which, I guess, they deemed too expensive compared to the benefits Economies of scales are a real thing…Permalink
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British fintechs will have a symmetrical problem Revolut got a Lithuanian license but it took them something like two years. I’m doubtful many British fintechs will do something similar. At the end, a lot of them could lose access to the EU, which would hamper their developmentPermalink
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The British fintech sector seems to be one of the most dynamic in Europe, and now faces a significant risk of being almost nuked because of Brexit As I already said, their only chance is if the UK and the EU negotiates a new passportPermalink
Mood +1 🙂
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But considering the weakness of the UK in these negotiations, I guess the EU will use this passport to get a lot of leverage for things the UK would want to protect… We’ll seePermalink
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