Specialist publication Law360 has revealed that, whilst fintech investment in the UK fell by roughly a third in 2016, it increased by 84 percent in China. [Photo: Baidu.com]
By Rupert Reid for Sino.uk
The future of the United Kingdom as a hub of fintech appears to be in doubt, after reports that investment in the sector has crumbled due to uncertainty over Brexit.
Whilst that's bad news for the UK, it might be good news for China.
Specialist publication Law360 has revealed that, whilst fintech investment in the UK fell by roughly a third in 2016, it increased by 84 percent in China.
Fintech is short for financial technology, a fast-growing area of start-up development, based on using software to provide financial services.
As recently as October, we'd reported that two front-runners had emerged in the battle to be the future home of the fintech industry, China and London.
London now appears to be losing the race. Analysts place the blame for this firmly with Brexit. Not only has the vote to leave the European Union raised uncertainty about access to international markets from the United Kingdom, it has also created concerns about recruitment.
A large number of fintech workers in the UK aren't British, but come from Europe and further afield.
Companies (not just in fintech) are increasingly concerned that Brexit will hamper their ability to recruit and retain staff from outside the UK.
Total global investment into fintech continues to increase at a rapid pace.