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banking post brexit: what could a hard brexit mean to the truly british banks?

posted 4 months ago

Twenty Recruitment Canary Wharf

Author: James Warren | Managing Director, Europe 

The banking industry has faced fears over the result of the referendum since long before the results were announced last June. There have been reports of the industry’s biggest names making plans to relocate operations and staff to countries within the EU, including France. The French President, Francois Hollande, has said: "There must be a threat, there must be a risk, there must be a price" for leaving the free market.

There’s No Place Like Home

For British banks, though, relocating to greener pastures is not the answer. As Ernst & Young’s UK Financial Services Leader Omar Ali explained.

“We have a close-knit network of industries that work well together, an attractive legal and regulatory framework and a global reputation for talent, innovation, high quality service and easy access to finance.” Ali went on to say that, despite the uncertainties surrounding Brexit, he expected the country to remain at the centre of global financial services.

With several highly-valued financial companies having affirmed their commitment to the UK market and declared their intent to maintain their London-based operations, the tables have turned from the initial panic-stricken, ship-jumping reaction, to a calmer, more thought-out plan of action.

The Other Side of the Coin

A lot of reports seem to focus on the difficulties facing Britain – and the companies located here – should a hard Brexit be on the cards. However, a hard Brexit will also cause negative consequences for the remaining EU member states, as banks located in the UK are currently responsible for £1.1 trillion in loans to EU countries. This means that a hard Brexit will negatively impact both Britain, and those countries relying on the current partnership for financial assistance.

As more information surfaces, and more debates are held in preparation for the triggering of Article 50, it is starting to become apparent that European companies do not want to lose their access to UK-based institutions and services. This is good news for banking and financial services candidates, as it means that the fall in banking recruitment which was predicted prior to the referendum may not transpire as predicted.

Staying Afloat Amid Uncertainty

While politicians continue to debate the terms of Brexit, it is impossible to assert anything with 100% certainty. But for British banks, this is one of the best times to seek new hires. Alongside the usual skills and qualifications needed to succeed in the financial industry, candidates seeking new opportunities during Brexit negotiations are displaying a lot of grit, bravery and perseverance – which will be useful skills to have on board once Article 50 is in effect. So, if your company is currently looking to recruit banking staff, get in touch with our consultants, who can introduce you to these determined individuals.

Banking recruitment is at a pivotal point. Many companies are continuing to grow, and financial services recruitment has not seen the predicted decline. For financial services candidates, now is a great time to speak to us at Twenty Recruitment and get on board. 

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