{"id":10881,"date":"2021-04-27T09:58:34","date_gmt":"2021-04-27T08:58:34","guid":{"rendered":"http:\/\/blogs.kent.ac.uk\/kbs-news-events\/?p=10881"},"modified":"2021-04-27T10:25:39","modified_gmt":"2021-04-27T09:25:39","slug":"comment-will-the-eu-sign-a-post-brexit-deal-on-financial-services","status":"publish","type":"post","link":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/2021\/04\/comment-will-the-eu-sign-a-post-brexit-deal-on-financial-services\/","title":{"rendered":"Comment: Will the EU Sign a Post-Brexit Deal on Financial Services?"},"content":{"rendered":"

In response to the news that PricewaterhouseCoopers predicts the EU will sign a post-Brexit deal on financial services, Dr Timothy King<\/a>, Senior Lecturer in Finance Banking and Innovation,\u00a0and\u00a0Director of the Centre for Quantitative Finance<\/a> at Kent Business School<\/a>, gave his insights, saying:\u00a0\u00a0<\/strong><\/p>\n

\u2018<\/span>PwC has recently publicised its belief that the EU will sign a post-Brexit deal on financial services with the UK because of the importance of London as a financial centre.\u00a0<\/span>\u00a0<\/span><\/p>\n

‘Historically, t<\/span>he UK<\/span>, especially the city of London, has been\u00a0<\/span>a\u00a0<\/span>major<\/span>\u00a0player in the\u00a0<\/span>global\u00a0<\/span>financial services industry.\u00a0<\/span>However, t<\/span>his\u00a0<\/span>dominant position was subject to a significant shock\u00a0<\/span>in the wake of the<\/span>\u00a0unanticipated result of the UK\u2019s\u00a0<\/span>EU\u00a0<\/span>referendum result when\u00a0<\/span>52%<\/span>\u00a0of UK voters voted to leave the\u00a0<\/span>EU<\/span>. <\/span><\/p>\n

‘With that decision, <\/span>and\u00a0<\/span>several years of protracted negotiations and ongoing uncertainty regarding the future extent of\u00a0<\/span>the\u00a0<\/span>UK<\/span>\u2019s relationship with the EU, a number of major<\/span>\u00a0financial service providers move<\/span>d<\/span>\u00a0staff and key operations away from London to major European financial centres in the EU including\u00a0<\/span>Dublin, Luxembourg and Frankfurt<\/span>.\u00a0<\/span>This casted a shadow on the future of London and the UK as <\/span>a dominant player in the global market for financial services.\u00a0<\/span><\/p>\n

‘Financial centre’\u00a0<\/strong><\/h3>\n

‘Whil<\/span>e Brexit has undoubtedly had a major impact<\/span>, in\u00a0<\/span>other<\/span>\u00a0ways the UK has\u00a0<\/span>been able to<\/span>\u00a0strengthen its position as a financial centre of global importance<\/span>\u00a0in the provision of financial services<\/span>. This is especially true in regards to the leading role the UK is playing in<\/span>\u00a0the<\/span>\u00a0develop<\/span>ment<\/span>\u00a0and embracing\u00a0<\/span>of FinTech. <\/span><\/p>\n

‘FinTech firms<\/span>\u00a0are increasingly offering new financial services either independently, or through collaborations within banks and other traditional financial institutions. Banks are also investing heavily in FinTechs.\u00a0<\/span>Most notably, while<\/span>\u00a0the UK may\u00a0<\/span>now\u00a0<\/span>have left the EU<\/span>,<\/span>\u00a0<\/span>t<\/span>he\u00a0<\/span>UK is dominant\u00a0<\/span>within Europe\u00a0<\/span>in the FinTech sector. To illustrate<\/span>,<\/span> while there are now over 4000 FinTech firms in Europe, 38% of these are located in the UK. <\/span>\u00a0<\/span><\/p>\n

‘In sum<\/span>mary<\/span>, PwC\u2019s prediction that the UK will\u00a0<\/span>sign a post-Brexit deal on financial services with the UK because of the importance of London as a financial centre<\/span>\u00a0seems highly credible<\/span>. However,<\/span>\u00a0<\/span>this view\u00a0<\/span>i<\/span>s not based on some nostalgic\u00a0<\/span>reflection of the UK and London\u2019s dominant past in the\u00a0<\/span>worldwide\u00a0<\/span>financial\u00a0<\/span>and banking sector<\/span> landscape. Moreover, it is based on the <\/span>UK\u2019s\u00a0<\/span>ability to embrace the future of financial technology and\u00a0<\/span>to\u00a0<\/span>provide an environment characterised by strong regulatory support\u00a0<\/span>in innovation\u00a0<\/span>that has allowed FinTech to thrive and the UK to underline its importance once again as a\u00a0<\/span>major global player<\/span> in the provision of financial services.’<\/span><\/p>\n

Kent Business School offers many courses to suit a variety of students in the area of finance. Looking for undergraduate options? Check our our BSc <\/b>Accounting and Finance<\/a>.\u00a0 Postgraduate courses include <\/b>\u00a0MSc Finance<\/a>, Banking and Finance<\/a>, Finance and Management<\/a> and the brand new and innovative MSc Financial Technology.<\/a><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

In response to the news that PricewaterhouseCoopers predicts the EU will sign a post-Brexit deal on financial services, Dr Timothy King, Senior Lecturer in Finance … Read more<\/a><\/p>\n","protected":false},"author":74553,"featured_media":10162,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[124],"tags":[170977,238257,244778],"_links":{"self":[{"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/posts\/10881"}],"collection":[{"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/users\/74553"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/comments?post=10881"}],"version-history":[{"count":10,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/posts\/10881\/revisions"}],"predecessor-version":[{"id":10891,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/posts\/10881\/revisions\/10891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/media\/10162"}],"wp:attachment":[{"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/media?parent=10881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/categories?post=10881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/kbs-news-events\/wp-json\/wp\/v2\/tags?post=10881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}