Last month the United Kingdom voted for Brexit in a referendum to leave the European Union.
The ‘Brexit’ decision will have a huge impact upon the finance and leasing industries as regulation, trade and policy are likely to be affected given the integration of EU law and the British finance sector
The markets and general reaction since the vote underline that the vote for Brexit was unexpected. While major institutions had taken some contingency planning, and the entire economy will be watching to see the impact that this will have as the dust settles.
The long term impacts will not be known until the political aspect of the referendum is settled, and a clear pathway has been laid out for how the UK will implement the result.
The immediate impact is uncertainty. The world financial markets have been fluctuating, and confidence in the UK as a lender has been lowered by some credit agencies. One measure suggests, the largest US and European banks are about $165 billion worse off.
This fluctuation is likely to continue in an adapting political and business landscape.
FLA Brexit Impact Analysis
The Financial Leasing Association (FLA) has reached out to its members to offer advice and analysis on the impact of Brexit.
They reminded their members that the current UK legal and regulatory framework remains as it was before the vote and the legislative and regulative consequences may take years to fully defined. In the meantime they state they will
Keep in close touch with the Government, Bank of England, FCA and other stakeholders, including other UK trade bodies and Leaseurope/Eurofinas, to ensure they are aware of FLA members’ interests and concerns.
The lobbying of the FLA will give members a voice in what is an important time within the finance and leasing industry. It is reassuring that the consequences of the vote will be a high priority within their organisation.
Respond to the post-Brexit Business Scenario
The vote to leave the European Union will have long-term impacts on the finance and leasing industry. Since the exit conditions, implications and timing are all uncertain; it is hard to forecast precise impact with confidence. Organisations need to take multiple scenario-based strategies to planning, modelling for different outcomes and scenarios considering your particular industry sensitivities to the various sources of uncertainty, like currency dependency or EU market access and how they impact your business and operating model. Utilise these to test the resilience of your current plans and formulate response options that reflect on your strategic initiatives and in risk management.
VIP Apps Consulting has extensive experience within the financial services industry with the knowledge capabilities and operational track, to help organisations implement the process changes, optimisation and innovation to realise the financial value in a customer driven market.
Keep up to date with the latest industry news and trends by following us on LinkedIn