The recent UK Budget has reportedly affected the country’s appeal as a destination for hiring staff in the fintech sector, according to Koen Koppen, the CEO of European payment fintech Mollie. In comments made to Tech.eu, Koppen stated that the UK has “gone down a few places” in its attractiveness to employ individuals, citing significant tax increases as a crucial factor influencing this shift.

The Budget, announced by Chancellor Rachel Reeves, included measures that will see firms shouldering a £40 billion tax rise. These include an increase in the National Insurance rate and a reduction in the threshold at which employers begin paying this tax, as well as an increase in capital gains tax. Koppen noted that such tax increases can lead to a rise in the cost of labour and might cause companies to reassess their employment strategies in the UK.

Koppen elaborated by stating, “When the cost of labour rises significantly on the back of tax increases, that might or might not trigger a point in time that we say at these rates this is no longer advantageous to Mollie to employ a central resource in a given country.” Although Mollie only has a small central resource team based in London, Koppen emphasised that this development does not enhance the attractiveness of the UK as a location for job relocations.

The administrative burden imposed by Visa requirements for non-EU staff entering the UK, a consequence of Brexit, has further diminished the UK’s position in terms of hiring opportunities, according to Koppen. This has compounded the difficulties faced by employers in an already challenging hiring landscape. Amid fierce competition in the fintech sector from firms like Checkout.com and Stripe, Mollie continues to expand its operations, having recently launched in Italy, with potential future markets in Spain, Poland, and the Nordics.

The fintech industry, including Mollie, is actively exploring the implementation of emerging technologies. Koppen indicated that Mollie is employing “significant amounts” of Generative AI technology, ultimately enhancing operations in various sectors such as customer support, onboarding, and engineering. Notable AI models, including OpenAI’s ChatGPT and Google’s Gemini, are being utilised in these efforts.

Mollie, which was valued at approximately $6.5 billion following an $800 million funding round in 2021, recently announced that it has broken even as of March this year and has been profitable since. Koppen described the company as “well capitalised,” suggesting a solid foundation as it navigates the evolving fintech landscape amidst broader economic challenges in the UK.

Source: Noah Wire Services