Brexit: The way ahead for the financial services industry
Britain’s proposed exit from the EU has created uncertainty for the global financial sector, with over 250 foreign banks accessing the EU through Britain’s membership, and the financial industry employing over 2.2 million workers in the UK. And with little clarity about Brexit’s process and its implications, British and European businesses face a tough challenge.
In particular, the loss of passporting rights will severely compromise global banking operations, because they enabled UK banks to sell to the EU without a branch, US banks to sell to the EU from UK, and for non-EU institutions to operate across the EU from their UK headquarters.
In the Brexit aftermath, banks that have gone digital will do better than those which have not. Financial institutions would do well to use digital platforms to help operationalize data assets and to enable innovation for growth. A proactive approach that makes them agile and adaptive is the only way financial institutions can tackle the implications of Brexit. Mohit Joshi, President and Global Head, Financial Services, Infosys, details out the Brexit implications and cope-up mechanisms for banks in an article for Finextra.
Published with permission from Finextra.