EU approves Brexit ‘flextension’

How could a further three months of uncertainty affect investment and small business?

Leading finance experts discuss the impact of a further Brexit delay.

This morning, President of the European council Donald Tusk tweeted: ‘The EU27 has agreed that it will accept the UK’s request for a #Brexit flextension until 31 January 2020. The decision is expected to be formalised through a written procedure.’ 

Tusk made the announcement after the 27 countries that will remain in the European Union when Britain leaves agreed on Monday to accept London’s request for a Brexit extension.

But how might another three months of uncertainty and debate affect the vital community of small businesses and the investors that support them? Luke Davis, CEO and Founder of IW Capital, discusses the impact of the outcome on investment:

“Small businesses in the UK are undoubtedly hoping for increased certainty over the Brexit deal and leaving date. Once the deal is confirmed the sentiment to push on with business will really be able to take off. As entrepreneurs and investors look to capitalise on new opportunities that are bound to exist after Brexit. Over the last year or so, we have seen a concerted effort to get on with business, regardless of Brexit and the eventual outcome.

One thing that we need to ensure is that entrepreneurs and investors looking to start or support a small business are not put off by the turmoil in Parliament. At IW Capital, we have experienced record deal flow and buoyant investor confidence. What Brexit ends up looking like will not affect the fantastic range of innovative, growing SMEs we work with that are likely to drive our private sector forward.”

Jenny Tooth OBE, CEO of the UK Business Angels Association, shared her views on what the delay could mean for regional businesses:

“As negotiations continue to drag on and eat into the transition period, which was put in place to help business prepare for the imminent loss of EU support, we are at risk of running out of time to plan and make changes. Funding for SMEs in the regions has been somewhat forgotten about recently. This will subsequently impact regional SMEs more than larger businesses that can take the hit, or areas such as London or the Golden Triangle which receive the majority of domestic investment.

The potential loss of investment from the continent including the European Regional Development Fund, Horizon 2020 and the Jeremie fund could create a huge investment gap in UK. This is concerning not only for the loss of EU money, but the risk that Government support for finance to replace this EU funding may take time to have an impact on the ground.”

If you would be interested in speaking to Luke or Jenny or if you have any questions at all, please don’t hesitate to get in touch.

James Lester
Senior Communications Executive
42Bruton

Banking Circle Launched Payments Insight Paper: Latest research highlights the vital role of PSPs in increasing SME financial inclusion

London, 27th October 2019 – Money20/20 USA today played host to the launch of the latest Banking Circle insight paper. ‘Pay, Set, Match! Payment services for SMEs – Jump-starting a virtuous digital payment circle’, uncovers the challenges and opportunities for payment providers serving SMEs.

Banking Circle, the ground-breaking provider of business banking infrastructure, commissioned MagnaCarta Communications to produce a series of research papers investigating how financial institutions of all types can each play a role in increasing SME financial inclusion. This insight paper is the latest in the series, following the initial white paper which launched in May 2019 and a Banking Innovations insight paper published in September 2019.

Anders la Cour, Co-founder and Chief Executive Officer of Banking Circle commented: “Increasing financial inclusion is core to every Banking Circle solution we build. As such, we regularly speak to businesses of all sizes and types, working in all regions and industries, to gain invaluable insights into the current challenges and where we can tackle existing pain points. This Payments-focused insight paper includes input from a range of players in the market, each identifying key challenges and opportunities for payment providers.

“The unique insights we have gained in producing this paper are invaluable for Banking Circle but also for the wider industry and will help us work together to build an ecosystem of efficient and cost-effective solutions to meet the needs of real businesses. The current offering is not serving SMEs effectively enough, but meaningful change will only be possible when every player in the market knows and fulfils its specific role, working in collaboration and not competition with other providers.”

The full report, ‘Pay, Set, Match! Payment services for SMEs – Jump-starting a virtuous digital payment circle’, is available to download at bankingcircle.com/whitepapers and video interviews can be found here.

About Banking Circle

Banking Circle is a next-generation provider of mission-critical financial services infrastructure leading the rise of a super-correspondent banking network. Banking Circle empowers banks and financial tech businesses to support customers’ trading ambitions – domestic and global – whilst reducing risk and the operational cost of transactions. Banking Circle solutions are increasing financial inclusion by helping thousands of businesses transact across borders in a way that was previously not possible.

In 2013 Saxo Bank formed a new entity, Saxo Payments A/S, with the purpose of using Saxo Bank’s core capabilities within the non-cash payments market. In October 2015 the company launched the Banking Circle – its ground-breaking product for payments and FX to the Financial Tech industry. In October 2017, the company launched its new identity for Banking Circle, to reflect its position as a financial utility servicing Financial Tech businesses and banks. In September 2018, Banking Circle was acquired by EQT VIII and EQT Ventures, in partnership with Banking Circle’s founders.

Domiciled  in the European Union, Banking Circle specialises in providing global banking services including accounts, payments, lending and foreign exchange services to financial institutions, including FinTechs, banks, acquirers, payment service providers, FX brokers, money transfer businesses, e-wallets, and alternative payment providers.

For further information and interviews please contact the Banking Circle Press Office: 

Wendy Harrison/Lucy Wright – Harrison Sadler

T: 0208 977 9132 E: [email protected]