Note from the Publisher: OMG, the market’s going down, no it’s going up! Now equities are up but bonds are down! OMG, what’s going to happen next? Trump has been officially President-Elect for under one week and the entire planet seems abuzz on how the markets will be (or already have been) affected, almost like an 8-year old that got his hands on a bottle of Coca-Cola, and swigged it down in under a minute. So with all that speculation on hyperspeed, add the musings of a Canadian in the bond market to the equation, and we find ourselves with a story published on FinanceMagnates that asserts that American fintechs may have to FLEE to Canada to escape the coming regulatory uncertainty in the US under Trump! WHAAAAAAT?!! Anyway, a good example of how strange things can get when there is something new and uncertain.
“2016 was a volatile time for fintech organizations globally. In Europe, June’s referendum decision in the United Kingdom left many British businesses shocked, losing a key advantage by closing themselves off from the European open-border system.
The pressure and uncertainty of remaining in a now-single market was not lost on fintech firms in the UK, which were left wondering whether staying in London – once labelled the ‘Global Fintech City’ – was a profitable decision for their businesses.
Five months later, the world has yet again been thrown a curveball. Donald Trump has been elected as the next president of the US, leaving many without any predictions as to what the future holds.
With increased policy uncertainty and the potential for a radical shift in the political landscape, it is interesting to examine how Donald Trump’s unexpected presidency may affect the fintech environment in the United States and abroad.
Trump’s platform placed a heavy emphasis on the renegotiation and abolition of international trade deals like the TPP and NAFTA. With Canada and Mexico being America’s number one and number three trading partners respectively, a strain on these relationships could have a negative effect on economic performance within certain industries in the US.
Should the US choose to create restrictions on how international business is conducted with the nation, eventually it could push globally oriented fintech organisations to cross the border north into Canada, where time zones, language and geographical location remain similar.”