Waiting for the time when the U.K. leaves the European Union (EU), Ireland and Germany are all poised to step up to fill a void as leader of Europe’s fintech scene, according to the co-founder of a global venture capital firm backed by The Boston Consulting Group.
Raj Ganguly, co-founder and partner at B Capital Group is of the view that Brexit is certainly going to have an impact on the fintech industry. He says that Brexit, which will mean the U.K. will lose its easy access to Europe’s financial industry, even while being sceptic about the timing of the exit and saying that it’s difficult to tell exactly what it will be.
“It seems like London is going in the direction of a hard Brexit. And with the the passporting rules potentially going away, I personally think that, even if you look at last year, Germany for the first time had two of the biggest fintech fundings versus traditionally mostly happening in the U.K.,” Ganguly said in a television interview in Berlin on Tuesday.
“I think it’s going to be a little bit of a battle between Ireland and Germany over who really steps up and takes the leadership role in fintech over from the U.K. post-Brexit,” he posited.
Ganguly said his firm had been increasingly turning its attention to opportunities in Asia while describing the burgeoning importance of regions outside of the U.S. for fintech investing.
“We also have seen a rebound here in Europe, initially we saw the rebound mostly in the UK but we’ve really seen Germany take off over the last year or two,” continued the long-time VC investor and former strategy consultant.
Distinction between the opportunities emerging from accelerating technological developments for fintech industry players and the challenges thrown up by the political environment were clearly drawn by Ganguly while turning towards his home market of the U.S.
“There are two sides to it. We’ve seen tremendous growth in technology over the past decade. Areas where technology hasn’t impacted before from transportation to banking to healthcare. There’s a lot of excitement about that,” he noted, focusing on the key positives for FinTech investors today.
“I’d say the political climate is a bit more challenged. There’s a lot of questions about what these changes in the political climate mean but at the end of the day our belief is that the relentless march forward of technology and innovation won’t be slowed by the geopolitical environment,” Ganguly concluded.
(Adapted from CNBC)