Brexit and financial services

Canary Wharf, London
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Canary Wharf, London
Insurance

Data gathered from artificial intelligence platform Talent Ticker has highlighted some worrying figures – and, surprise surprise, Brexit’s to blame once again.

Talent Ticker revealed that since Brexit, there has been a marked increase in the number of financial services companies expanding to open European offices, and that the UK - even London itself – has lost its appeal, with many services relocating to European Union (EU) member states and practising caution when hiring in the UK’s capital city, so as to continue trading with the EU should a no-deal Brexit come about.

There can be no doubt that companies are jumping ship in reaction to Brexit – with the 30-per-cent increase in banks making job cuts compared to the same period in 2017 (which Talent Ticker identified), firms are acting fast to cut their losses and reduce the risk of the disruption that a hard exit from the EU may cause. Take a look at J.P. Morgan if you need further convincing: the investment bank has reportedly made 300 employees agree to move to France or Germany in the event of a no-deal Brexit. And Talent Ticker suggests that this will not be the last instance of such actions. The AI platform noted that private banking, trading, sales, operations, middle office and risk & compliance are among those financial services roles most as risk of being lost to European locations.

On the other side of the coin, Ireland, France and Germany have been identified as the ‘most prominent countries likely to see an influx of financial services employees’, with Frankfurt being the most popular destination. Luxembourg is also high amidst the ranks of popular relocation countries, adds Talent Ticker.

Talent Ticker Founder and CEO Nick Vaughan commented: “However Brexit unfolds, gaining access to great talent will play a big part in the future of the banking world. Trends show growing consumer trust in online banking and this has enabled more emerging technologies to also enter the arena, with things such as AI and automation playing an increasingly bigger part in banking. Most of the talent who build these great products are still based in the UK and want to stay here so London will always remain as a talent powerhouse, globally.”

Indeed, not all is lost yet, and Talent Ticker has revealed that, although many traditional financial services firms are shying away from London and the UK, other major cities such as Cardiff, Bristol and Glasgow are becoming ‘hubs for technological innovation’, with emerging fintechs popping across the UK every week.

Still, it’s good to make sure that employees are updated on the ever-changing environment that Brexit creates for their working lives, as Vaughan illustrates: “It’s now more crucial than ever that financial service companies speak to their staff to understand what is keeping them up at night. There needs to be clear internal communication about whether staff are going to be affected. This reassurance could be the difference between keeping and losing the top players on your team.”