A third of UK fintech organisations likely to leave EU – survey

The European Passporting legislation, which allows UK fintech companies to conduct business across Europe, is crucial in their decision to remain part of the EU, according to a survey conducted by the Emerging Payments Association (EPA), a UK payments industry body. Many consider harmonised financial regulations across the EU to be easier for cross-border business.

“There is no legislative enforcement of an open bank framework with PSD2; no harmonisation of passporting financial regulation licenses as a member state; there are no caps on interchange fees for retailers and consumers”, Neil Harris, Head of Business Development and New Business at Bottomline Technologies said about the impact of a successful Brexit on the UK fintech sector.

Many of the EPA members are already looking at contingency plans in the event of an out vote, with several already in the process of becoming regulated in continental countries to ensure their passporting operations are not affected.