Post-Brexit Challenges and Opportunities for Fintechs
The implications of Brexit continue to reverberate across many sectors, one of which is the fintech industry. As businesses adapt to the new reality, the high-stakes compliance burden of Brexit is pushing smaller fintechs to the brink of forced market exit or insolvency due to crippling capital requirements. However, Bruno Pedras, the CEO of Belmoney, suggests a solution for firms that never fully committed to the expensive option of relocation.
A Conversation with Bruno Pedras, CEO of Belmoney
According to some estimates, around 46% of UK financial firms have opened costly EU offices to survive post-Brexit. These firms have incurred an initial investment of over £350,000 just to replace lost market access. Bruno Pedras, the CEO of Belmoney, warns that this high-stakes compliance burden is pushing smaller fintechs to the brink of forced market exit or insolvency.
However, Pedras has an innovative solution to this problem. Instead of encouraging expensive relocations, he advocates for a strategic, tech-enabled workaround that has already saved some firms over £500,000, bypassing a year of licensing bureaucracy in the process. Pedras has been instrumental in helping UK fintechs seamlessly expand back into the European Single Market. Specifically, he advocates the development of Remittance-as-a-Service (RaaS), a regulatory “plug-and-play” bridge to the EU.
About Belmoney
Founded in 2013, Belmoney was created with the mission to transform international money transfers. It positioned itself as an innovative alternative to traditional banks, combining speed, competitive rates, and a strong customer-centric approach. Licensed as a payment institution by the National Bank of Belgium, it began operations under PSD1, operating with security, transparency, and full compliance in the European market. Today, Belmoney is active in over 130 countries.
The Belmoney Solution: Remittance as a Service (RaaS)
The Belmoney Remittance as a Service (RaaS) offering enables firms to expand their payment services across Europe without tackling the regulatory maze or challenging technical headaches. RaaS empowers financial companies to launch branded remittance solutions across all 30 EEA countries without the need for their own license. In essence, Belmoney’s complete solution provides the regulatory, technological, and operational infrastructure for firms to operate in Europe quickly, securely, and in full compliance.
The Shopify or Stripe of remittances
In explaining the value of Belmoney’s offerings, Pedras likens his company to the “Shopify or Stripe of remittances”. Much like how Shopify simplifies e-commerce and Stripe simplifies online payments, Belmoney simplifies cross-border payments for companies that lost access to European markets post-Brexit. Essentially, Belmoney handles the regulatory heavy lifting, including PCI compliance, list screening, and safeguarding, allowing firms to focus on the customer experience and operate on a low margin where they can scale and find a market fit in weeks.
Reflecting on the mindset of fintech founders, Pedras notes that a shift in perspective is often needed to survive. He advises against focusing solely on acquiring a license, reminding firms that the license itself is nothing without clients. Pedras emphasizes the importance of making ‘quick errors’ which can be corrected without losing everything, a mindset that promotes agility and resilience in the face of change.
Source: Here
