Attracting Fintech to the European Union is a benefit for this conglomerate
The year 2017 can also be called the “Year of Fintech”, thanks to the development in fintech sector driven by blockchain infrastructure and smart contract applications. With traditional banking and financial institutions around the world increasingly expressing interest in adopting these solutions, it is a lucrative business opportunity for many companies in the industry. Governments have recognized the importance of Fintech and its contribution to the country’s financial services industry, which in turn has influenced them to attract these companies. The perception of this technology begins to change and it is governments that want to participate.
Along the same lines, the European Union is doing its utmost to facilitate the operation of fintech companies in the region. The increasing effort follows the close separation of Britain from the Union and the present position of the United Kingdom as the finotech incubator of Europe. In an attempt to attract fintech companies, the EU recently announced lower regulatory requirements and EU passport benefits to companies operating in the sector. The process of offering great start-up facilities and interested professionals is already under way.
Likewise, EU Executive Vice-President Valdis Domnrovskis referred to the Union’s attempt to create a delicate balance between a favorable working environment for financial technology companies and the protection of consumers’ interests against potential risks. Passport rights will allow companies to operate normally in any member nation as if it were a local company. In such a scenario, companies will have to go through the licensing and regulation process only once, which is usually during registration and commencement of operations. On the other hand, the Passport will save a lot of time and money for the company, since they do not have to repeat the process in every EU nation they wish to operate. This is a great advantage and a not insignificant attraction.
Therefore, Fintech companies in the UK are already contemplating the future in Britain post-Brexit, as they may lose unhindered access to other EU nations, which they have been enjoying so far. The relaxed regulatory requirements will make it attractive for companies to relocate their base of operations for greater access to the market.
The European Commission is also holding a public consultation to find ways to address issues related to financial regulation, technology, data, access to entrepreneurship financing, consumer protection and competition. Inputs will help address not only the needs of the population, but also device policies that foster innovation in financial technology and encourage firms to establish themselves in the region.
In this respect, it will now be possible to visualize that the United Kingdom can do to prevent the Fintech from going to other EU countries, chances are that improvements or offers will be initiated, for the companies that are operating in this Kingdom, From now we can see a chain of events not to lose these jobs and the benefits that can generate the Fintech. It can be said that a range of possibilities is open to be embedded in the global market from the country that is chosen and that offers greater competitive advantages.
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