A Brexit vote would result in the exodus of UK-based FinTech companies to cities such as Frankfurt, Paris, New York or Shanghai.
According to Mortgage Introducer, remain MP Gareth Thomsas said the UK FinTech sector would stand to lose out if the referendum vote was favourable to life outside of the European Union (EU).
Speaking at a Scottish Friendly’s Brexit debate held today, Thomas said: “Britain is the centre of financial services in the European Union. If we were to pull out of the European Union there is no doubt that you would see many financial services businesses over time emigrating to either Frankfurt, to Paris, or out of the EU completely.”
The MP added that it was in Britain’s interest to remain in the EU if the country were to retain its prominence in FinTech.
“Part of the attraction of the EU membership for many of the businesses that are located in the City is access to a series of like-minded businesses,”he added.
In stark contrast, Lord Howard Flight, a supporter of Brexit, argued back, saying that leaving the EU would have an “extremely limited” effect on the country’s FinTech firms.
Kelvin Hopkins, Labour MP for Luton North, agreed, saying he believed the economy would actually benefit from a Brexit. Leaving the EU would help to boost sectors such as manufacturing, he added.
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