It would cost banks and other financial services companies an average of £50,000 (US$64,915) per employee to relocate parts of their UK workforce to another European city in the wake of Brexit, an analysis suggests.
Financial services consultancy Crossbridge – now part of the Synechron group – has come up with the figure, which it calculated using estimated relocation, hiring and redundancy costs, new building and rent expenditure and other infrastructure and some contingency costs.
“Following the UK’s decision to leave the European Union (EU), many banks and financial services firms are having to consider where best to locate certain parts of their workforce,” said Tim Cuddeford, a London-based member of Synechron’s business consulting practice.
“Financial ‘passporting’ is vital to the work many banks undertake across Europe and they will have to think carefully about which city within the EU their interests and their clients’ interests will be best served.
“Our calculations show that it could cost these firms on average £50,000 per employee to relocate parts of their workforce out of the UK, perhaps to financial centres such as Amsterdam, Dublin, Paris and Frankfurt. Other cities may be just as competitive and worth considering as long as there is access to similar talent pool and infrastructure.”
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.