A little bit of online research on the world’s most important website for investing is going to show you one very frightening new element. It appears that, the investments in the Fintech sector actually appeared to be slowing down for 2020.
Two massive events
Now, if we take some time to consider two very important key elements that have occurred over the past four years we are going to realise exactly why this is happening. Starting off, we need to consider the Brexit.
If the UK made a decision. The United Kingdom no longer part of the European Union. As a result, a lot of funding that was going from the EU to the UK has now been cut. A lot of funding was actually used as a high interest investment fund for the Fintech sector and it is no longer there.
The pandemic changing the investment market
At the same time, during the past year, we noticed that the pandemic has shifted pretty much everything around labour market. How amount of the world has stopped working and the other half is working almost 60% slower than what it was before.
As you can understand, this entire concert has changed the way investments are reaching the UK. Yes, there are those people who are actually investing in the UK because they believe that the British pound will eventually go back to normal or even higher and Right now they are purchasing a very low price.
People are investing in Great Britain still
At the same time, there are those people who claim that, the British pound and in general Fintech sector is going to take a very long time to get back on its feet. Long enough for other sectors to appear and actually take over which means that, they are holding off when it comes to their investments.
At the end of the day, it all has to do with predictions which basically means that, within the next few months we will see massive changes in the investment sector as well. People are going to start investing in things they did not really believe in the past.
More innovations to be made
In addition to that, other sectors and smaller companies will appear and will try to take over big conglomerates. There is still a lot of room for innovative ideas in the start-up environment and the European ecosystem. What will happen in investments still remains to be seen.