Yahoo Finance VC Eileen Burbidge: London won’t lose its ‘fintech edge’ after Brexit
A key concern among British-based businesses about Brexit is the potential for an exodus of talent to other European locations that can offer better access to the bloc’s single market.
Attracting and retaining talent is a top priority for the UK’s booming fintech industry. The UK was the top destination in Europe for fintech investment in 2018, although investment activity tailed off in the second half of the year, according to KPMG.
Eileen Burbidge, partner at early-stage venture capital firm Passion Capital — which has invested in many UK fintech startups including GoCardless and Monzo — thinks Brexit’s impact on the sector won’t be felt immediately when the UK eventually leaves the European Union.
Speaking on Yahoo Finance UK’s Global Change Agents with Lianna Brinded show, Burbidge said the UK’s position as a global fintech leader was built over decades, thanks to the region’s educational institutions and research and development heritage. For that reason it’s unlikely to drop off overnight either, she said. (Watch the full Eileen Burbidge interview here.)
“I think it [could lead to] a decline for some sectors in the industry but it won’t be overnight,” said Burbidge. “Even in the worse case, I don’t think you’ll see London lose its fintech edge or fintech crown in the next year, or even two years. It might be a … four or five-year problem.”
Still, Burbidge described Brexit as “a real shame” for the UK fintech scene.
“I think Brexit is clearly not a boost for the economy; it’s not a draw for talent; it doesn’t help the conversation about why people should be coming to the UK and to London,” said Burbidge.
There have been some early warning signals that the UK fintech sector’s ability to attract top candidates could already be on the wane. A report released earlier this year by TheCityUK, an industry body that supports UK-based finance and professional services businesses, and Odgers Berndtson, a recruitment company, found there has been a “significant decrease in graduates coming to the UK from France and Germany in particular” since the Brexit vote in 2016, for example.
The Fuelling Fintech report went on to recommend fintech and other financial services companies forge stronger partnerships with universities to help foster UK talent and improve training of existing employees in new skills.
Global Change Agents with Lianna Brinded explores the stories of some of the most inspirational women across business, tech, and academia. Catch up on all the latest episodes here.