Late September introduced the information that Lloyds and Barclays can be closing EU-based UK expat accounts owing to the tip of ‘passporting’.
The event raised the likelihood that neobanks and fintechs may leverage their expertise and recognition to satisfy this ‘gap’ out there.
Pierre-Antoine Dusoulier, Founder and CEO of iBanFirst, contacted FinTech Journal to supply his unique insights:
“The potential for a no-deal Brexit has led main UK banks to shut the accounts of British expats within the EU. In line with the monetary group, it’s unsure if company accounts will even be closed; it’s extremely possible that the choice will likely be a country-by-country and bank-by-bank strategy.
“For those EU businesses confronted with the closure of their UK bank accounts, they will incur much higher costs when receiving payments in EUR, since payments could be incorporated into international payments pricing models.”
A watershed second for fintech
The difficulty is compounded by bulletins made earlier in February by main digital bank N26, which acknowledged it will be withdrawing from the UK market as a result of limitations of its European banking license.
Clearly, if shoppers and companies on either side of the difficulty are to emerge from Brexit efficiently, an modern finance resolution might want to current itself. This opinion is shared by Dusoulier.
“A service that may facilitate cross-border funds is a pretty choice. Companies can simply open a GBP account to obtain GBP funds from their British clients, obtain intracompany transfers from their UK subsidiaries and optimise their consolidated cash movement. On the identical time, European companies will have the ability to pay their suppliers in their very own foreign money.
“Simply put, a cross-border payments solution can make it easier for companies to send and receive international payments without the need for a UK local bank account, while shielding themselves from political jousting and the possibility of a no-deal Brexit.”
With corporations like iBanFirst and TransferWise already primed to resolve the UK-EU monetary disconnect, the conclusion of Brexit may very well be a watershed second for each cross-border funds and fintech to resolve issues seemingly insoluble through conventional infrastructure.