The decision to pursue Brexit was hardened when the British electorate re-elected Boris Johnson with an overwhelming majority. This was a turning point for the UK and led to a number of reaffirmations which however were made when no one has even thought about that months later we will be living in a world shadowed by Covid-19.
The facts are that The UK left the EU on 31 January 2020 and is now in an 11-month transition period. During this period the UK effectively remains in the EU’s customs union and single market and continues to obey all EU rules. So what does the future hold for the UK economy given the certainty that they are leaving the EU behind one way or the other? And how is the uncertainty surrounding what the future relationship between the former trading partners might be, and what this might mean for the UK economy, the way business will be conducted and how businesses should prepare for the outcome?
A No-Deal Brexit and the COVID Economy
One of the biggest fears that analysts had concerning Brexit was the prospect of a “no deal” situation.
Yet those prognosticators should have allowed themselves some more creativity as now the potential hazard isn’t just a No-Deal Brexit, but such a scenario on top of the economic downturn inaugurated by the COVID-19 pandemic seems to be not the best one.
The onus is on lawmakers that much more to arrive at an agreement that is not only workable but also will not exacerbate the current crisis gripping the UK And the global economy.
In the coming months, businesses in the UK hope the situation becomes much clearer as far as Brexit is concerned and for one primary reason: Complying with regulations.
One of the major pushes by the Conservatives in support of Brexit was that London would be able to unshackle itself from Brussels and their regulations thus unleashing British business to go out and conquer the globe. While much of that was campaign bluster, the fact remains that businesses will have to comply with one regulatory regime or the other in a post-Brexit world. In areas such as digital banking and payments settlement, this is especially important given London’s position as the clearinghouse of the world’s financial transactions.
As can be expected, much of this will flee to Paris and Frankfurt should the regulatory regime imposed by the post-Brexit world prove unfavorable but, as emphasized time and again, no one quite knows what is going to happen at the present moment.
Outside of the EU Yet Working With the EU
Given the exigencies of the current economic situation, thought leaders and political analysts are confident that the EU and UK will be able to tie up a deal. That would allay many of the concerns about a No-Deal Brexit and the chaos that would bring.
One thing that is going in the UK’s favor is the EU’s initiative towards broadening the digital economy, particularly services which can advance forward with a tremendous speed thanks to the fintech revolution happening in the last decade and thanks to the advancement in the sector of digital banking services.
The UK will likely become a a strong integral partner in this movement going forward and it is on fulcrum upon which many see the future relationship pivoting. Giving the UK a strong hand in the future development of financial systems in the continent and abroad could do much to sideline concerns that Brexit would mean a total sundering of workable relations, but the hard work of actualizing those relationships remains to be done.
Helping businesses advance in the digital economy
Having outlined the aspects of the past and the future for a Brexit economy in the shadow of the current pandemic we definitely see great potential and opportunity for the businesses which are advancing in the digital economy. Subscription-based businesses, skill-games, online dating, e-commerce, and other industry sectors that are actually booming in times of global business uncertainty.
The Monneo’s software platform provides services to the spectrum of businesses mentioned above and help them secure more stable and risk-free conduct of business by providing access and securing effective control to multiple Virtual IBAN accounts the companies can use when executing payments in 134 different currencies
Such functionalities are extremely useful in the context of the ever-evolving digital economy. Additional to all that it should be well noted that Monneo’s application procedure takes just a few minutes. No physical presence of the client is required. All the client needs to do is complete our online application form. From there on, our customer support agents will be available to guide him through the process.
If you would like to know more details obout our digital banking services, what risk-management practices we apply, or how Monneo’s unique approach can help you advance forward with your digital banking solutions contact us now or directly apply for your virtual IBAN on our website.