Financial Services is a strange balance right now with London continuing to cement itself as the world’s centre for financial services, whilst fearing the rug being pulled from beneath it. This month I see more Brexit news (shockingly), a new cash flow tool that could help the UK’s SME’s increase their productivity and Mr Cameron returns to work!
Free Trade Agreement for Financial Services
Unsurprisingly, the main concern in financial services continues to be the impact of the stagnated Brexit negotiations. The ‘passporting’ rights that currently exist across the EU to sell financial services in all its member states greatly benefit everyone concerned.
A report from key banks, law firms and fund managers in the UK proposes a “bespoke” free trade agreement once Britain leaves the EU. The report suggests that by reducing unnecessary costs and ensuring that the markets remain accessible to all will reduce the risk of multi-national financial services firms considering Singapore and New York as their new base.
Whilst I understand Frankfurt’s desire to bring the lucrative financial services market into mainland Europe after Brexit, London is operating as a very effective hub and the whole of Europe’s financial services industry is benefiting from this.
Disregarding all the ongoing debates and, let’s be honest, posturing in the Brexit negotiations, the UK and EU have and will continue to have regulatory regimes that follow essentially the same principles and guidelines. So a free trade agreement is not as difficult to gain consensus as some other pinch points that are being debated. Hopefully sense shines through soon.
Fintech News – Fluidly
In Fintech, there is news that Fluidly has raised £2m to assist it with recruiting and retaining the engineers it needs to develop its intelligent cash flow and credit control management tool.
They have developed a “Cashflow Engine that uses machine learning to automate and optimise cash flow” for SME’s. Fluidly had a full launch at October’s Xerocon and is available on the Xero marketplace to use now.
As an accountant I know how important the understanding of cash flow is, and equally how few SME’s understand it, let alone manage it effectively. Fluidly, and especially its potential integration into Xero is an exciting tool that could enable business to reduce the time they spend on chasing bills and finance admin, so they can spend more time on growing their business.
David Cameron in Financial Services?
First Data Corporation, a US based company that processes electronic payments has announced their latest hire, a certain ex-politician from the UK, who stated “I am incredibly proud that during my time as prime minister the United Kingdom became a global force in fin-tech”.
Though the remuneration he receives for the role has not been revealed, we can assume that he will not be short of a dollar or two. His role will see him sit on the advisory board and advise the chief exec.
Whilst on the surface it appears a strange move, David Cameron is undoubtedly an advocate that has a global reach and influence that First Data will hope to benefit from.
UK businesses need to ensure they keep themselves aware of a constantly developing market and how this may impact on them and their customers.