Brexit News: UK trumps EU as new investment ‘epicenter’ | United Kingdom | News

Ivan Zhiznevskiy reports that his company, 3S Money, saw a 322% increase in the number of non-UK businesses opening bank accounts in the UK between 2019 and 2020. This growth has continued since the UK officially broke up. United with the EU at the end of 2020, with a 108% increase reported over the last twelve months.

This suggests that fears that the UK would lose its position as one of the most attractive places for foreign investment after Brexit were unfounded.

2021 was the best year ever for the UK tech sector in terms of investment, with registered venture capital of £26 billion.

This surge in investment has proven to be crucial for the job market. A June 2021 government report reported more than 55,000 new jobs in the previous year, thanks to foreign investment.

The investment isn’t just benefiting London – for example, jobs in Manchester grew by 164% in 2021, while Cambridge was heralded as the UK’s leading regional tech city.

Mr Zhiznesky told the reason was partly that the UK offers something that many EU countries do not: accessibility.

He described the “Amazon Prime” mentality of many investors, saying “people expect their service to be delivered instantly. If not, they begin to suspect that it is not a good quality product. Obviously, that’s not necessarily the case, but that’s what many companies think now.

This is the key to Britain’s success, he argues.

He said: “That’s what the UK offers in terms of financial services. I can go to a company’s website and have a company registered in fifteen minutes. Then I can go to a company like 3S Money and open a bank account within hours.

“That mentality is also higher in places like China or the Middle East than in Europe, and the UK follows suit.

“I also think it’s partly because of the fantastic entrepreneurial spirit we have here.”

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Mr Zhiznevskiy added that London’s sense of inclusion is crucial in promoting this level of investment.

He said: “In London it is possible to be taken seriously as a foreigner, but try to phone an EU bank and speak in a non-native accent. London remains the most multicultural city in Europe.

The FinTech CEO wasn’t sure the investment surge was a direct result of Brexit, but said it certainly showed Brexit hadn’t hurt Britain’s place in the global financial market .

He said: “Before Brexit everyone said the UK was over. London has not lost its place as a hub to different markets – on the contrary, its position has strengthened. It is the epicenter of foreign investment.

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“The European Union is less open to foreign trade initiatives. And Britain is completely opposed to that. It’s the key to success.

Sam Cox, CEO of Fivefour Engineering Services, added: “The biggest challenge for trading in the EU has been arranging bank accounts for non-EU organisations.

“The bureaucracy involved in obtaining a European bank account is not ideal for the fast-paced construction sector in which we operate.

“In the midst of Covid-19, establishing our business in Sweden with a solid base in the UK is the best decision we have made as a business.

“The UK’s banking infrastructure continues to be the most business-friendly in Europe and has been the strongest base from which to trade with the EU.”

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