Fintech & Ecommerce

UK FinTechs Seek Government Support After SVB Collapse

In the UK, local startups that operate in the field of fintech express concern that the country is losing its position in the global financial system.

UK FinTechs Seek Government Support After SVB Collapse

Source: motionarray.com

Representatives of fintech startups say that the British government should make more efforts and implement more measures to ensure that the country continues to meet the status of a financial center. They say that in this case, it does not matter whether these measures relate to attracting new funding or reforming the lists.

Christian Faes, chairman of mortgage lender LendInvest, which went public in 2021, says that London was the center of the fintech industry, but over the past few years, the degree of compliance of the British capital with this status has been decreasing.

The UK government has long called for the adoption of a set of measures, the implementation of which will allow the country to be the unconditional center of the fintech sphere. When Rishi Sunak became Prime Minister of the country in October last year, as chancellor, supported the so-called hub plan, many representatives of the crypto industry saw this as a harbinger of positive changes. But since then, the field of digital assets has experienced significant upheavals. One of the negative impact factors was the collapse of the Silicon Valley Bank, which served many fintech startups.

In March, the British banking giant HSBC announced its intention to acquire the local division of SVB and invest $ 2.1 billion in its operations. Representatives of the fintech industry say that this deal is a much better option compared to the closure of the division. At the same time, many of them are concerned about the potential for a cultural conflict between the two banks.

Philip Hammond, the former Chancellor of the United Kingdom and chairman of the Copper crypto company, questioned whether HSBC has the strength to provide support to high-risk companies in the early stages. He noted that SVB as a conditional autonomous space represents the territory of an original culture, and there is no guarantee that this originality will be able to continue to exist and develop as part of a larger structure.

James Hickson, founder, and CEO of European income lender Bloom, said that HSBC represents a good haven for depositors. He also wonders whether a traditional-type financial institution will be able to conserve the energy of a bank focused on advanced technologies.

As we have reported earlier, UK Government to Fight Illicit Crypto Use.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.