Connect with us


How the UK Has Set its Sights on Becoming a Fintech Haven in the Wake of Brexit



Opinions expressed by Entrepreneur contributors are their own.

Significant policy changes and reform of London’s company listing regime in the wake of Brexit is set to spark a “digital big bang’ in the UK in a bid to accelerate the growing fintech industry within the nation — according to a recent, government-commissioned review.

alexsl | Getty Images

The report, published in February 2021, highlights that Brexit’s regulatory uncertainty and growing global competition could undermine the UK’s position as a leader in the world of fintech unless action is taken.

The review was carried out by the former Worldpay chief Ron Kalifa and is one of a number commissioned by the government to help strengthen the UK’s status in the world of finance and technology.

As things stand, the UK is a European leader in terms of the number of companies operating in fintech and new fintech endeavors starting out. However, complications arising from Brexit may lead to the loss of ground between the UK and the likes of Germany and France as one of the world’s favorite destinations for establishing a fintech endeavour.

Both finance and technology sectors are under greater pressure from rivals since the UK’s exit from the European Union at the start of 2021, but it’s possible that Brexit could provide a little more freedom to convert the nation into an even more appetising prospect to retain and build on the support of the developing fintech industry.

With global fintech revenue expected to reach more than $300 billion by 2022, there’s plenty of justification behind the UK prioritising its fintech industry as a key area to retain businesses and work on attracting fledgling companies. Let’s take a deeper look into how the UK looks to capitalise on the growing fintech market in the wake of Brexit.

Passport to Fintech.

The UK government will utilise a visa scheme that’s targeted at fintech professionals in a bid to fill any emerging gaps in the sector’s workforce as a result of Brexit causing a loss of access to the EU’s significant skills base.

The move has already been greeted by the fintech industry, in which many players had been concerned about access to skilled workers before the conclusion of the Brexit process.

According to a Sunday Telegraph report, chancellor Rishi Sunak will soon announce a plan to help the UK fintech sector to retain the talent it needs to continue as a world leader in the industry.

It’s hoped that the fintech visa programme will help the UK to keep its place as a prosperous location for fintech unicorns to flourish. After the exit from the EU, the UK lost its automatic right of professionals across Europe to work in the country. During the same time, many skilled European workers have left the UK due to the climate of uncertainty and negativity prompted by Brexit.

With global competition for fintech talent within the sector, cities like London face fresh competition from European destinations like Berlin, Barcelona and Amsterdam – which are becoming increasingly popular for fintech professionals with the right to work across the EU.

This exodus is exactly what the UK is looking to prevent, and the danger posed by the situation has been underlined by Ricky Knox, CEO at fintech bank, Tandem, who said: “Tech visas are a great thing and essential if we are going to keep a competitive tech and fintech sector,” he added. “Over half of our coders are from outside the UK and some have already left due to Brexit.”

Room to accommodate crypto.

Another aspect of the review has called on the UK to revise its approach to the regulation of crypto-assets as a means of welcoming more fintech businesses in the future.

Recent restrictive measures by UK regulators involve bans on the sale of crypto derivatives and an anti-money laundering register that have created a somewhat hostile environment for blockchain or decentralised finance fintech businesses to set up camp in London.

The review points out that other markets have been pressing ahead with the development of crypto-specific frameworks, like the EU’s Markets in Crypto-Assets proposals. It also states that the UK needs to act quickly to revise its position on these matters before competitors begin to overtake the tech hub.

“A bespoke regime for crypto assets should adopt a functional and technology-neutral approach, in line with the principles of the current regulatory framework, as well as the concept of “same risk, same regulation”, while being tailored to the risks arising from crypto asset-related activities,” the report states. “It should also be flexible enough to deal with future challenges — such as how Decentralised Finance (DeFi) should be regulated.”

In addition to this, the review also recommended that the UK carries on in its participation of the Global Financial Innovation Network — a working group of national regulators — and to lead the way on crypto policy and regulation moving forward.

One particular sector that could benefit the UK is decentralised finance, better known as DeFi. In a market that’s grown from less than $1 billion to around $40 billion in under a year, fintech surrounding DeFi apps that are built on cryptocurrency blockchains could be the key to ensuring sustainable growth as technology continues to transform the financial landscape.

The rise of the IPO.

The government has also identified public listings as a key way to help generate better financial stability. Already, Prime Minister Boris Johnson has reportedly met with executives from Deliveroo, Revolut and other tech firms in order to convince them to list on the London Stock Exchange.

Again, the recent report suggests a reduction in the percentage of shares in the hands of public investors to avoid diluting the early backers of fintech startups – as well as “golden share’ or dual-class share structures that could allow founders to better retain control of their firms and remain safe from hostile takeovers.

This call for a listings reform in London may have come at an ideal time, as firms like Deliveroo, Wise and Darktrace all rumoured to debut in 2021. Elsewhere, other firms like Revolut, OakNorth and have found themselves in the midst of IPO speculation as financial and tech firms valuations have grown in the wake of the Covid-19 pandemic.

This move may draw significant levels of investor interest back to London. Although many IPOs today are focused on institutional investors, there are companies that can allow individuals to participate in initial public offerings that would otherwise be inaccessible. Freedom Holding Corp. (FRHC), a NasDaq listed company, has a platform called Freedom24, in which individuals can apply to participate in the IPOs of their choice — albeit at a financial threshold of at least $2,000.

There are more traditional organisations like Fidelity that also offer general public participation — however, only at the much higher threshold of $100,000 to $500,000 in household assets.

Another traditional platform is TD Ameritrade, which is owned by the giant Charles Schwab Corporation (SCHW), allows IPO participation for selected account holders. The threshold is pretty high, though. To be eligible to take part in IPOs, your account must have a value of at least $250,000 or you must have completed 30 trades in the last 3 months.

The true value in these London-listed IPOs could be found in the UK’s plan to build its appeal as a fintech haven in the wake of Brexit. With a sustained buzz around financial technology and more accommodating regulations, 2021 is set to be a significant year in the battle to keep talent from leaving these shores for the lure of the EU.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


This is What You Need in Your 5-Year Marketing Plan



Opinions expressed by Entrepreneur contributors are their own.

We’ve all heard the interview question, “Where do you see yourself in five years?” Marketers routinely take that question and apply it to their marketing strategies. They figure out what they want to achieve and then develop actionable steps to get there. Keep in mind, these plans aren’t designed to be all-encompassing. They serve as a guidebook for different scenarios while getting the team thinking about what they’d like to accomplish long-term.

Your five-year plan is a way to build an overarching metric for how you’re doing — or how you plan to do over the next half-decade. There are many things to consider when building your plan — here are a few to look at carefully:

The 3 key buckets

A successful five-year marketing plan should fixate on three main questions:

  1. What assumptions can you make about the next five years within your company?
  2. What goals do you want to achieve?
  3. What are the metrics you’ll use to measure those goals?

Assumptions are what you think won’t change in the business over the next five years. For example, you might assume that you will continue using particular vendors or that packaging costs will remain stable. From there, you can determine your goals — like boosting sales by 50% or converting 10,000 new customers. The metrics that measure your progress might be units sold or your company’s market share. It’s essential to include both readily-accessible metrics — such as website views — and brand metrics that might be a bit harder to come by, such as the associations your customers have made with your products or company.

Importantly, there’s no “right” or “wrong” when it comes to answering these questions. Every business has its own vision, resources and position, which all influence its marketing strategy. The aim is to develop a plan that will produce the most desirable outcome for you, rather than worrying about what other businesses have the capacity to do.

Related: Use These 5 Steps to Create a Marketing Plan

Narrowing your focus

Just like consumer preferences, marketing tactics are constantly shifting. Social media demonstrates this well. Because social media platforms have skyrocketed over the past two decades, marketers no longer rely solely on traditional platforms such as print or television ads. And even within social media, things aren’t constant. TikTok has become one of the fastest-growing platforms, quickly overtaking Facebook.

With so many options, your marketing plan must keep a narrow focus. For some companies, TikTok doesn’t matter. They can’t yet measure the return they’re getting from the platform, so this isn’t exactly a feasible opportunity. Don’t be tempted to try everything or be everywhere. It’s a matter of isolating what you practically can use to give you the insights that will help you.

Two questions will help focus your strategy:

  • How do your goals compare to last year?
  • What are you striving for (e.g., enhancing the brand vs. increasing brand awareness)?

How you answer those questions will help you identify where and how to focus your efforts so you don’t get lost in a bunch of small, irrelevant tactics.

Using your budget

Most people think of budgets as being stable or hard data — but almost all companies work with unknowns. In reality, the best they can do is come up with an educated guess that seems to make sense – a ballpark range. Because nobody can plan with certainty for every scenario — and because it’s so easy to become overwhelmed with an infinite range of outcomes — it’s advisable to lean on a few key financial assumptions and build a strategy around those.

Once you have a budget figure to work with, create high and low projections for everything you want to do. Let’s say the aim is to get to 50% brand awareness. What would your plan look like if you exceeded that and got to 75%? Alternatively, what would you do if awareness went down to 25%? Creating these high and low projections will let you design a more flexible approach and avoid being caught too off guard.

As you come up with your main scenarios and high-low projections, think about the key internal drivers you’ll need to address next year. Consider the risks, and assess whether you’ll have the data, technology and skills to develop and maintain what you expect to put forward. Keep in mind that it’s more important to pivot when issues come up than to predict what’s going to happen accurately.

Related: 4 Tips for Developing a Marketing Plan That Will Actually Grow Your Business

Paint flexibly within your broad strokes

A five-year marketing plan paints a broad, long-term picture of how you’ll communicate with your audience while giving details about your projected products or services. It includes assumptions and factors that aren’t necessarily static, so you have to approach it with a grain of salt and be ready to shift gears if the plan doesn’t work.

Even so, if you stick to three key buckets (assumptions, goals and metrics), keep your tactical focus narrow and incorporate multiple projections in your budget, you should end up with a strategy that blends the data and flexibility needed to strive in a changing world. Because annual marketing plans need to connect to your long-term marketing vision, let the annual marketing meetings serve as check-in points to keep your longer-term marketing plan relevant and viable.

Source link

Continue Reading


Lauren Sánchez Is Heading to Space on a Girls Trip



Sorry, Jeff — this one is for the girls.

Jeff Spicer / Stringer I Getty Images

The Amazon executive chairman’s girlfriend, a former journalist who collaborates with him on philanthropy, is bringing a girl gang to space

Jeff Bezos’ girlfriend, Lauren Sánchez, said in a new interview with the Wall Street Journal that she planned to take an all-female trip to space with the Amazon founder’s space manufacturing company, Blue Origin.

Five women will join her on the journey.

“It’s going to be women who are making a difference in the world and who are impactful and have a message to send,” she told the outlet.

The mission is set for early 2024, and the passengers’ names will be announced at a later date.

The WSJ’s report was Sánchez’s first solo interview, the outlet noted, since her relationship with Bezos went public in 2019, shortly after his divorce announcement from now ex-wife, MacKenzie Scott.

The interview also talks about Sánchez’s relationship with Bezos and the business advice he’s given her (keeping meetings under an hour, speaking last as a boss).

Sánchez is a former broadcast journalist and a helicopter pilot who founded her own filming company Black Ops Aviation, per Insider.

“Right now, I’m immersing myself in philanthropy and strategic giving,” she told the outlet. She also has a new production company, Adventure & Fellowship.

Bezos and Sánchez also work together on picking the winner for the Bezos Award for Courage & Civility, which was awarded to Dolly Parton in 2022, giving her $100 million to dole out to charities as she pleased.

But don’t expect Bezos to crash the girls’ trip. “He’ll be cheering us all on from the sidelines,” Sánchez said, adding that Bezos is “excited to make this happen with all of these women… He’s very encouraging and excited, and he’s thrilled we’re putting this group together.”

Sánchez’s nonprofit work includes This Is About Humanity, which helps give supplies to kids separated from their parents at the U.S.-Mexico border, supporting the Bezos Earth Fund, which fights climate change, and working with the Bezos Academy, a system of free Montessori schools.

Bezos told CNN in an exclusive that aired in mid-November that, like many other billionaires have pledged to do, he would give away most of his money.

Ex-wife Scott, meanwhile, has donated over $14 billion since 2019, much of it coming from the settlement with Bezos.

Bezos has always planned on giving his money away, Sánchez told the outlet.

“Jeff has always told me since I’ve known him that he’s going to give the majority of his money to philanthropy,” she said.

Source link

Continue Reading


8 Ways Traders Can Manage Their Emotions and Achieve Success



Opinions expressed by Entrepreneur contributors are their own.

Short-term trading can be a thrilling and potentially profitable endeavor, but it also requires a deep understanding of not only the markets and strategies but also of one’s own trading psychology.

The fast-paced nature of short-term trading (scalping, day trading, and to some extent, swing trading) can lead to significant stress and emotional turmoil, which can negatively impact a trader’s performance if not properly managed. In this article, we will explore some key aspects of trading psychology and discuss strategies for managing emotions and achieving success in the trading arena:

Related: 6 Important Tips for Improving Your Emotional Control

1. Detachment

One of the most challenging things about trading is the ability to remain emotionally detached from our trades. This means that you should strive to separate your emotions from your trading decisions and focus on the facts and data. This can be difficult to do, especially when the market is moving against you or when you’ve already experienced losses. But this detachment is crucial for maintaining a rational perspective and making sound trading decisions.

At all times, you must get into the habit of asking yourself the question, “Am I just projecting onto the market what I want to see happen or not see happen, or am I looking at things objectively?”

This is a very powerful way to notice when you’re getting carried away in rash emotional decisions.

2. Attitude

Another important aspect of trading psychology is having a positive attitude. Attitudes are different than emotions in that they’re the mindset you decide to cultivate day in and day out, in the face of challenges and difficulties.

Trading can be incredibly challenging, and it’s easy to get discouraged when things aren’t going well. So, traders must be able to stay positive and maintain a long-term perspective, even when faced with short-term losses.

This can include things like focusing on the lessons that can be learned from losing trades, rather than dwelling on the losses themselves. It’s also crucial to have realistic expectations — not expecting to become a millionaire overnight, but being patient and consistent in your approach while keeping an open mind to learn and evolve with time.

3. Discipline

It’s also crucial for traders to stay disciplined. Even the most successful traders can fall into the trap of getting caught up in the hype of a new trend. There’s nothing wrong with onboarding a new trend, but generally speaking, traders need to learn to think for themselves and not blindly follow what’s hot at the moment.

To avoid these trading psychology pitfalls, traders should focus on a well-researched strategy and stick to it, even when things aren’t going their way. This can be achieved by developing and following a trading plan, which outlines your risk management, entry and exit criteria, as well as other important elements of your approach.

Additionally, traders should also set specific goals and hold themselves accountable for achieving them.

4. Self-awareness

One of the key elements of a winning trading psychology is self-awareness. This includes being aware of your own strengths and weaknesses, as well as your emotional triggers and tendencies. By understanding these things about yourself, you can take steps to manage your emotions and make better trading decisions.

The best way to develop self-awareness, on purpose, is via meditation. It takes 10-20 minutes per day. That’s it. Observe your thoughts and your feelings objectively and non-judgementally, and when you notice that you get carried away by thinking, mentally detach yourself from the thinking process and observe it objectively again.

Doing this for 10-20 minutes per day is enough to begin exercising your awareness muscle. This greater level of awareness will positively impact the way you trade, guaranteed.

Related: How Mindfulness Can Help Traders Succeed

5. Confidence

Having confidence in yourself, your abilities and your strategies is crucial to being a successful trader. However, it’s also important to recognize the difference between confidence and overconfidence. The latter could lead to taking unnecessary risks and not managing the risks properly, while the former allows traders to make the right decisions even in adverse situations.

The best way to develop confidence is by practicing it. Be decisive when you trade. Good or bad, when you make a decision, stick with it. And whether the outcome is favorable or unfavorable, keep practicing that decisiveness muscle, and your confidence will grow.

Always remember: Be flexible in what you expect, but be decisive about what you do.

6. Adaptability

One of the biggest obstacles that traders face is fear and greed. Fear can lead to missed opportunities and profits, while greed can cause traders to hold onto losing positions for too long, hoping for a rebound that may never happen.

To combat these emotions, traders must first recognize them and then take steps to manage them by acknowledging the fact of uncertainty. Markets are constantly changing, and what works today may not work tomorrow. Traders must embrace that fact and constantly adopt a mindset that adapts to these changes. This requires flexibility and an open mind, and the willingness to learn and evolve over time.

One technique to embrace uncertainty is to journal about it. Examine the patterns you revert to when something unexpected happens in the market. Do you get emotional and impulsive? Do you worry? Understand what you do and why you do it, and you’ll have an easier time changing those things.

7. Preparation

Preparation is essential for trading success. This includes setting clear trading rules like stop-losses and profit targets, as well as having a plan for how to exit a trade in the case of a black swan event (an adverse event that is completely unexpected). Ideally, this preparation should be done outside of market hours when traders are at their most rational.

Preparation also includes doing certain exercises that promote focus, concentration and equanimity under pressure. Traders can prepare mentally through mindfulness, visualization or another form of mental training.

8. Rest

Finally, it’s important for traders to take time away from the markets to relax and recharge their trading psychology. This can include things like taking occasional breaks from trading and engaging in activities that are unrelated to trading altogether. This can help traders stay focused and refreshed, and it can also serve as a reminder that there’s more to life than the markets. Taking care of physical, emotional and mental well-being will help traders to have a healthier mindset while approaching the markets.

Related: What Kind Of Trader Are You? An Introduction To Trading Behaviors

In conclusion, short-term trading requires not only knowledge of the markets and strategies, but also a deep understanding of one’s own trading psychology. By recognizing and managing emotions, maintaining a positive attitude, staying disciplined and taking time to relax and recharge, traders can improve their performance and achieve greater success in the trading arena.

It’s also important to remember that as traders, you are in it for the long term, and you need to be patient and persistent. Successful trading requires consistent effort and learning over a period of time, and you should be prepared to put in the time, energy and dedication required to build your skills, knowledge and perspective.

Source link

Continue Reading


%d bloggers like this: