Brexit Negotiations

Frankfurt Main Finance hopeful for constructive Brexit negotiations

With the formal declaration by the United Kingdom’s government to withdraw from the European Union, Brexit has now entered a new and decisive phase. Hubertus Väth, Managing Director of Frankfurt Main Finance e.V. states, “The beginning of the exit negotiations between the United Kingdom and the European Union are imminent. The negotiating parties are entering uncharted territory. Of the utmost importance, will be standing fast to the maxim that maintaining stability in the financial system must take precedence over individual interests. Both parties must strike the delicate balance between averting a cliff-edge scenario while still maintaining the recognizable appeal of membership in the EU.”

Frankfurt Main Finance continues to regret the United Kingdom’s withdraw from the EU and anticipates the loss of rights, including passporting. Managing Director Väth further explains, “The Financial Centre Frankfurt is exceptionally situated to assume a position functioning as a bridge for London into the EU. As the home of the European Central Bank, the Europe’s insurance supervisory mechanism, Europe’s largest stock exchange and the largest internet hub for data traffic, Frankfurt offers best infrastructure for credit institutions and financial services providers active across Europe. Frankfurt’s TechQuartier and dynamic, growing FinTech ecosystem have been distinguished by the Federal Government with the Financial Centre Frankfurt’s appointment as Germany’s Digital Hub for the finance industry. Therefore, we still estimate that around 10,000 jobs will be relocated to Frankfurt in the coming years.”

Contact Person for Media Inquiries:
Dr. Ralf Witzler
Frankfurt Main Finance e.V.
Telephone 069 94 41 80 – 50
ralf.witzler[at]fmfinance.de

Holland Fintech and Frankfurt Main Finance e.V. continue successful FinTech Matchmaking

Following their successful start in Amsterdam, Holland Fintech and Frankfurt Main Finance, continued their joint FinTech matchmaking on November 25, 2016. For financial services technology companies, access to foreign markets is of considerable importance. Frankfurt acts as a gateway for German FinTechs into the global financial world. This is also shown by the results of a recent EY study on the German FinTech industry, which shows how quickly Germany is catching up internationally and Frankfurt nationally.

With regards to Frankfurt and the entire Frankfurt Rhein-Main region, there is now a very positive climate for FinTech. With the launch of the Accelerator Frankfurt, the opening of the TechQuartier, the designation of Frankfurt as one of five German digital hubs and the awarding of the FinTechGermany Awards, the Financial Centre Frankfurt has impressively demonstrated its innovative power. The proximity to banks and regulators proves to be a locational strength for Frankfurt. Amsterdam is one of the most agile locations where innovations are adopted early. The event was proudly sponsored by ING DiBa and supported by Hessen Trade & Invest GmbH.

“Innovations arise when the best and most creative come together and learn from each other. That is why we are happy to support the event and look forward to the exchange,” says Željko Kaurin, Board Member at ING-DiBa.
Dr. Lutz Raettig, President of Frankfurt Main Finance, elaborated further, “Many German FinTech companies have successfully established their business models in Germany and are ready to take steps to expand internationally. Through our partnerships with leading financial centres around the world, we are able to support these efforts and work to position the Financial Centre Frankfurt as an attractive destination for foreign FinTech companies. Fintech Matchmaking events like these are a great platform for these young start-ups.”

About Holland FinTech

Holland FinTech brings together people and organisations, who believe that creating a level playing field in the financial ecosystem will drive innovation. And that connecting mature players to innovative start-ups across borders, will accelerate financial innovation to its full potential. Leaning on the strengths and strategic position of the Netherlands towards continental Europe, Holland FinTech will is building a technology based market place in global financial innovation.

 

About Frankfurt Main Finance e.V.

Frankfurt Main Finance is the Financial Centre initiative for Frankfurt am Main, the leading financial centre in Germany and the euro zone. The initiative has more than 40 members including the State of Hesse, the cities of Frankfurt and Eschborn, and dozens of prominent actors in the finance sector. Frankfurt Rhine-Main region offers young FinTechs attractive working and living conditions. The proximity to the established banks is also advantageous for these young start-ups.

FinTechGermany Awards – And the Golden Garage goes to….

Business Angels FrankfurtRheinMain, WM-Gruppe and Frankfurt Main Finance honor top FinTech, InsurTech and RegTech start-ups.

Yesterday evening, this year’s FinTechGermany Awards were presented, along with a new concept and in an extraordinary event space. With this leading award, the Financial Centre Frankfurt not only recognized the most promising FinTech, InsurTech and RegTech companies, but cast a spotlight on them. In addition to the high ranking jury members and the creative FinTechs, this year’s award ceremony was made extraordinary by the astounding location and its décor. Everything stood as a symbol of the Golden Garage.

The idea of transforming the event space into a Golden Garage and giving the award a new form, succeeded in symbolizing FinTechs’ ideas. The awards sent a clear signal that the Financial Centre Frankfurt supports and values these companies and their creative power.

The Golden Garages were presented by Dr. Jens Zinke (Managing Director, Börsen-Zeitung), Andreas Lukic (Chairman, Business Angels FrankfurtRheinMain and Jury Chairman) and Dr. Lutz Raettig (President Frankfurt Main Finance). The FinTechGermany Awards ceremony took place in conjunction with the grand opening of the Tech Quartier, Frankfurt’s newest FinTech Centre on November 17, 2016. The jury, consisting of high caliber personalities and experts from finance, capital markets, regulation and FinTech, chose the winners from four categories: Early Stage, Late Stage, Growth Stage and Foreign New Entrant to Germany. Winners’ business models should show the most promise for future success and to add long term value to the marketplace. With a top sponsor like Deutsche Boerse Group, alongside other prominent companies and institutions like EY, Baker & McKenzie and the IHK Frankfurt, the awards were able to win over a broad base of support.

The founder’s prize also provides the start-ups with more access and visibility to investors, whether it be involvement at their founding, IPO or sale, or simply providing feedback on their intrinsic value.

The Golden Garage winners are:

 Seed/Early Stage: Scalable Capital

Scalable Capital’s proprietary technology uses forward-looking projections, based on recent market developments, to measure the level of risk in the ETF products the client is invested in, and then reallocates their portfolio according to their risk limit.

“We are very excited about this recognition. It shows that we are not only in tune with the smart private investors, but also that industry experts are convinced of the potential and value of our technology and our business model.” – Erik Podzuweit, Co-founder and Co-Managing Director of Scalable Capital

Late Stage: CRX Markets

CRX Markets is an independent marketplace for Asset-Based Financing solutions and connects Buyers, Suppliers, Banks and Institutional Investors.

 “We see our winning the FinTechGermany Award as a confirmation of our hard work over the past years and as a thank you to our corporate and banking customers for their trust in CRX. In the coming years, we would like to position CRX as a holistic liquidity platform for financing short-dated assets for our customers. In cooperation with banks, asset managers and family offices, we would like to make deep liquidity in all product classes available for companies, in order to depict transparent and competition oriented corporate financing.” – Moritz von der Linden, CEO of CRX Markets

Growth Stage: WebID Solutions

Heading the WebID Solutions Group, WebID Solutions GmbH is Europe’s leading provider of legally compliant online contract signature and identification products and a worldwide pioneer in the AML compliant face2face online identification segment.

“We feel this recognition strengthens us in our work and WebID’s international growth strategy. From our office in Frankfurt, we will continue driving our expansion together with our numerous WebID partners in 2017.” – Frank S. Jorga, Managing Director and Co-CEO of WebID Solutions GmbH

Foreign new entrant to Germany: Quantoz N.V.

Quantoz is a Dutch technology company that services open, decentralised concepts with pragmatic solutions. For this purpose, they create and implement blockchain-based applications.

“For Quantoz, Germany has been the most attractive market since the beginning and Frankfurt our preferred location. Using our software, banks are able to better able to support their corporate clients with financial handling of processes in conjunction with the continuing digitialisation of industry.” – Henri de Jong, Head of Business Development at Quantoz N.V.

The prize is a perfectly complements the FinTech landscape in the Financial Centre Frankfurt. Alongside the Dialogue Forum FinTech, being a founding member of the Global FinTech Hubs Federation and numerous other activities, the FinTechGermany Awards gave Frankfurt Main Finance another perfect opportunity to showcase the outstanding and innovative FinTechs in the Financial Centre Frankfurt.

 

Brexit Frankfurt Finance Summit

Decision time is here – Frankfurt Main Finance at the FT Banking Summit 2016

At today’s FT Banking Summit, Hubertus Väth, Managing Director of Frankfurt Main Finance, explained, “For London’s banks, the time for decisions has come. We believe that London should maintain its position as Europe’s leading financial centre; however, some operations will still need to relocate into the Eurozone. In this regard, Frankfurt is in the pole position. Most banks are not able to wait and see how the Brexit negotiations turn out because they need to start lengthy talks with regulators before they can move their operations. The risks associated with waiting are much too high. It is decision time and moves are being made.”

FrankfurtRheinMain GmbH and Frankfurt Economic Development GmbH joined Frankfurt Main Finance at the FT Banking Summit to promote the Financial Centre Frankfurt as the top destination for those who must leave London. The three organizations have worked in close cooperation for months, developing a constructive and solution-oriented approach to positioning Frankfurt as a bridge between London and the Eurozone.

The Financial Centre Frankfurt is particularly well positioned to attract banks and other financial services that must leave London for the Eurozone. Already one of Europe’s most important financial centres, Frankfurt is a regulatory hub, home to the ECB, EIOPA, ESRB and already a part of EBA. Boasting the world’s largest data exchange point, DE-CIX, and more than 1 million square meters of available office space at costs around thirty percent lower than Paris, Frankfurt’s infrastructure uniquely equips it to absorb a displacement from London like no other financial centre. Current estimates expect around ten thousand jobs to relocate to Frankfurt over the next five years.

FinTechGermany Awards honor top FinTech, InsurTech and RegTech Start-ups

On November 17, 2016, Business Angels FrankfurtRheinMain, Frankfurt Main Finance, and for the first time WM Gruppe (Börsen-Zeitung) will present the FinTechGermany Awards. The renowned prize for entrepreneurs will honor the most promising FinTech, InsurTech, and RegTech companies from the following categories:

  • Seed-/Early Stage
  • Late Stage
  • Growth Stage
  • Foreign new entrant to Germany

The first three categories are not exclusively limited to German FinTech companies.

The FinTechGermany Awards ceremony will take place in conjunction with the grand opening of the Tech Quartier, Frankfurt’s newest FinTech Centre on November 17, 2016 at 17:30. The main sponsor of the award is Deutsche Börse. Additional sponsors include EY, Baker & McKenzie and the IHK Frankfurt am Main.

The jury, comprised of the Financial Centre’s top actors and FinTech supporters, will award the prizes to the FinTech, InsurTech and RegTech companies whose business models show the most promise for the future success and to add long term value to the marketplace. The three most important criteria are financial viability, scalability, and exit-potential. The yearly presentation of the FinTechGermany Awards aims to promote the Financial Centre’s FinTech ecosystem and especially the flow of funding into the region. The founder’s prize also provides the start-ups with more access and visibility to investors, whether it be involvement at their founding, IPO or sale, or simply providing feedback on their intrinsic value.

Hauke Stars, Member of the Executive Board at Deutsche Börse , responsible for Cash Market, Pre-IPO & Growth Financing, explained, “We want to contribute to Frankfurt becoming the leading location for FinTech in Germany. To this end, it is critical that all involved work together to build up a community that is attractive to FinTechs and allows all actors to profit from one another. The FinTechGermany Award helps to spotlight these efforts.”

With regards to the Frankfurt FinTech hub, jury member and President of Frankfurt Main Finance, Dr. Lutz Raettig welcomes the awards, stating, “The prize perfectly complements the FinTech landscape in the Financial Centre Frankfurt. The new FinTech Centre will also benefit Frankfurt’s appeal to German and international investors. Regulators and practitioners will also see this as an advantage. Frankfurt is a global Financial Centre which presents entrepreneurs with the optimal conditions for developing their FinTech company.”

The head of the jury and Executive Chairman of the Business Angels FrankfurtRheinMain, Andreas Lukic, believes that holding the award ceremony in conjunction with the opening of the Frankfurt FinTech Centre sends a clear message. He explained, “This is the ideal environment for our activities. Through the awards, we can facilitate the somewhat difficult access to institutional capital and grants, as well as mobilizing private capital for these FinTech companies.”

The jury consists of:

    • Andreas Lukic, Executive Chairman, BA-FRM e.V., Investor/Entrepreneur, Frankfurt, Jury-Chairman & Award Coordinator
    • Franz Cong Bui, Chief Online Editor, Börsen-Zeitung, Frankfurt, Sector Expert
    • Dr. Marc Gille-Sepehri, SVP Product Management, FIS-Fidelity National Information Services Inc., Entrepreneur, New York City/Frankfurt, Finance and IT Expert
    • Eric Leupold, Head of Department Pre-IPO & Capital Markets, Deutsche Börse AG, Eschborn
    • Dr. Manuel Lorenz, Partner, Baker & McKenzie, Frankfurt, RegTech and Regulation Expert
    • Michael Mellinghoff, TechFluence, London & FinTech Forum Frankfurt, Fintech-Community-Insider
    • Simon Nörtersheuser, Co-CEO, Policen Direkt GmbH, Frankfurt, InsurTech Expert
    • Dr. Lutz Raettig, President Frankfurt Main Finance, Frankfurt, Capital Markets Expert
    • Christopher Schmitz, Partner EMEIA Financial Services, EY-Ernst & Young GmbH, Eschborn
    • Alfred Schorno, Global Head of Sales/Managing Director, 360T Group, Business Angel, Frankfurt, FinTech Expert

InsurTech continues to gain influence in Germany

German InsurTech start-ups continue to grow and attract more funding. A newly released study from EY shows InsurTech as a new rising star in the FinTech community. InsurTechs are financial technology start-ups that attempt to change the insurance industry and how customers access insurance products through digitalization. While other segments of the FinTech scene have been growing for several years now, InsurTech is still in its infancy.

According to the study, only four unicorns focus on the insurance industry and InsurTech only attracted $4.63 billion in funding globally between 2008 and 2015. In Germany, InsurTechs raised €53.52 million between 2012 and Q1 2016, most of this occurring in 2015. EY cites the surge in funding in 2015 as an indicator that the InsurTech segment will become more impactful in the coming years. Noteworthy representatives of German InsurTech are Friendsurance, Finanzchef24, Clark, Knip and Schutzklick who have all achieved series B funding as early as 2015. In addition, their funding accounts for €47.45 million or 88% of all disclosed funding to German InsurTechs. Drivers accelerating the expansion of InsurTech are connectivity and data, the consequences of the financial crisis with the resulting pressures on interest rates, and customer dissatisfaction with interest rates.

Commenting on the study, Dr. Lutz Raettig, President of Frankfurt Main Finance e.V., stated, “The growth in FinTech and InsurTech investment in Germany is a reassuring development. These entrepreneurs reimagine the financial industry and create technologies that will add value and efficiency not only for end consumers but also for established actors. Financial institutions are smart to recognize the importance of these start-ups. Frankfurt Main Finance is heavily invested in the development of Frankfurt’s FinTech ecosystem and has promoted the creation of FinTech hubs in the region. Sponsoring competitions like the FinTechGermany Awards should help to draw attention to these young and successful companies.”

The study further explains that InsurTechs in Germany and abroad have not been able to develop stand-alone business models, partially due to regulatory factors. However, the InsurTech market is still in its relative infancy leaving any ceiling still undefined. Many business models existing abroad have yet to be replicated in Germany. EY identified three areas they expect new business to grow from: Big Data and analytics, data driven products, and back office-supporting functionalities.

To this end, Christoph Schmitz, Partner at EY and one of the study’s authors, explained, “The insurance industry will be permanently transformed by digitalization and the changes for these companies will only accelerate in the future. Therefore, it is critical that they concentrate on digital business models and further develop their own in-house capacities. In-house Innovation Labs and Accelerator Programs will provide a platform for innovative and flexible testing of new business models.”

Concrete challenges for incumbents are already present and are expected to grow in the future. The study outlines the need of insurers to intensify their digitalization efforts and develop corresponding capabilities in-house. Most of all, the study urges insurers to make sure they do not lose their customer relationships. The study concludes, “Although the ‘monopoly’ of underwriting and risk ownership will stay with insurers for the time being, an ongoing inability to develop customer-centric products and services will sooner or later deprive insurers of their most value-adding services.”

The study is available for download on the EY Website.

FinTechGermany Award

CFS Survey: the issue of cyber security must be on every financial industry agenda

The issue of cyber security is of central importance. Germany’s financial industry is in firm agreement on this point, attributing it a significance of high (20%) to very high (75%). This is shown by a current survey of financial institutions and service providers in the Financial Centre Germany conducted by the Center for Financial Studies. However, the industry is also largely in agreement (78%) that the issue is not being sufficiently addressed at the moment.

Most of the financial industry only expecting some measure of support from FinTechs

Only 8% of the survey participants expect significant support from FinTechs in the area of cyber security. Half of them (51%) believe their company will receive at least some measure of support. On the other hand, 29% are anticipating little support from FinTechs, and 7% none at all “The issue of cyber security is a key topic for the future, and in fact it is tailor made for young technology companies. I therefore expect we will soon see more start-ups in this area,” Professor Volker Brühl, Managing Director of the Center for Financial Studies, interprets the results.

Cyber security can become a competitive factor in the future – Establishing European data centres is seen as important to crucial

The large majority of the financial institutions (86%) is in agreement that the issue of data security can become a competitive factor for financial service providers. Only 12% do not believe this is a relevant point. Since a large amount of data from European users is stored by social networks in the US, the necessity of providing data centres for critical data in Europe is under discussion. The majority of the financial industry (59%) believes it is important to establish such data centres, while 26% regard this as crucial. On the other hand, 12% see little relevance in where data centres are located.

“The study demonstrates how important a world-class data infrastructure is for today’s financial sector. The Financial Centre Frankfurt sets the bar pretty high with dozens of data centres and the DE-CIX internet exchange. More than half of the German data centres are located in Frankfurt and the surrounding region. Our status as the Data Capital of Germany is irrefutable and makes us an even more attractive location for FinTechs,” comments Hubertus Väth, Managing Director of Frankfurt Main Finance e.V.

Bitcoins not expected to gain in importance as a payment method in light of data security concerns

Bitcoins are supposed to be particularly suited to preventing hacker attacks in payment transactions. However, the majority of the financial industry (73%) does not expect bitcoins to gain in importance as a payment method in light of such concerns.

finance industry

CFS Index shows upward trend – Finance industry revenues developing positively

The CFS Index, which measures the condition of the German financial sector on a quarterly basis, rises by 1.6 points to 110.3 points in the second quarter of 2016. The increase is based on the strong development on revenues in the finance industry. Contrary to expectations, however, the earnings performance of the financial institutions remains on a downward trend, while the service providers remain on a steadily positive trend. The investment volume of the finance industry is stable and almost unchanged. The financial institutions are anticipating job cuts in the current quarter; up to now the number of employees has remained stable at a neutral level.

“The survey results prove that a number of financial service providers are in a period of reorganisation, because the pressure on earnings in the industry continues to rise,” Professor Jan Pieter Krahnen, Director of the Center for Financial Studies, comments the results.

Finance industry sees the future international importance of the Financial Centre Germany at a historic high

The future international importance of the Financial Centre Germany reaches a historic high of 136.8 points. Owing to Britain’s potential exit from the EU, the corresponding value rises by 20.7 points.

Dr. Lutz Raettig, Executive Chairman of Frankfurt Main Finance e.V., emphasized, “We all deeply regret the results of the referendum, but naturally, we also respect the outcome. As a consequence, financial centres within the EU will now compete with one another to lure individual product areas and activities out of London. Frankfurt Rhine-Main will certainly be at the centre of this competition, but in a constructive and cooperative manner.

Business volume of the finance industry develops positively – contrast between earnings performance of financial institutions and service providers

The surveyed financial institutions and service providers manage to considerably increase their revenues/business volume again following the poor performance in the first quarter. The corresponding sub-index for the financial institutions rises by 2.7 points to 107.2 points in the second quarter. The service providers raise their revenues by 3.8 points to 120.3 points, which is only slightly below the prior-year level. The finance industry expects to maintain these levels in the current quarter.

In terms of earnings, the financial institutions record a further decline, contrary to their expectations. The corresponding sub-index falls to 96.9 points. However, the service providers reveal steady earnings growth, in spite of negative prior expectations. The earnings sub-index for this group rises by 0.3 points to 113.1 points. The financial institutions expect the low level to persist; the service providers are more optimistic for the current quarter.

The investment volume in product and process innovations of both groups remains at a solid level. The sub-index of the financial institutions falls by 0.2 points to 112.3 points. The service providers’ sub-index falls by 0.1 points to 112.6 points. As such, both groups are at the same level and neither is expecting changes in the current quarter.

Financial institutions anticipating job cuts in third quarter

As for employee numbers, which the financial institutions have so far kept stable at a neutral level of 99.7 points (+0.7 points), a significant decline is expected in the current quarter. The surveyed service providers are maintaining a higher level, with a value of 105.1 points, though they have hired significantly fewer new employees than in the previous quarter. The corresponding sub-index falls by 5.9 points. The service providers are optimistic that this value will improve in the third quarter.

 

Financial Centre Frankfurt emerges as major winner of Brexit

Germany’s financial industry is in firm agreement that the Financial Centre Frankfurt will profit from a British exit from the EU, although the outcome of the British vote largely came as a surprise to the industry. The potential impacts on the German economy are also regarded as neutral to positive. These were among the results of a survey of financial institutions and service providers in the Financial Centre Germany. Securities trading and settlement in the Financial Centre Frankfurt will receive a particular boost, according to 78% of respondents. Just over half the survey participants believe the European Banking Authority (EBA) will move from London to Frankfurt. Regarding potential shortages in Frankfurt in case of an influx of business, 72% of the surveyed financial firms are concerned about adequate living space.

“The survey results confirm that many financial market participants had not expected the Brexit outcome at all. This surprise effect is reflected in the high level of stock market volatility we can expect to see in the coming months,” Professor Volker Brühl, Managing Director of the Center for Financial Studies, interprets the results.

For almost all companies surveyed (95%), the Financial Centre Frankfurt emerges as the major winner. In addition, just over two thirds see Paris as another beneficiary of a British exit. 15% expect Amsterdam to profit. Just 6% see a positive effect for London. Hardly any respondents expect to see Milan or Madrid benefit, but one third expect positive impacts on other financial centres.

For almost all companies surveyed (95%), the Financial Centre Frankfurt emerges as the major winner. In addition, just over two thirds see Paris as another beneficiary of a British exit. 15% expect Amsterdam to profit. Just 6% see a positive effect for London. Hardly any respondents expect to see Milan or Madrid benefit, but one third expect positive impacts on other financial centres.

“Frankfurt was well prepared for a Brexit. We will make every effort to take advantage of this once in a century chance. It is clear to us that London will maintain its position as the central financial centre. We hope that the Financial Centre Frankfurt will become the bridge between London and the Eurozone,” explained Hubertus Väth, Managing Director of Frankfurt Main Finance e.V..

When asked in which business areas the Financial Centre Frankfurt could benefit in particular, 78% of respondents pointed to securities trading and settlement. Half the participants see opportunities for the areas of asset management and corporate banking, followed closely by professional services (43%). By contrast, only 7% named retail banking in this regard.

“The results reveal the market participants’ high expectations about the future role of the Financial Centre Frankfurt. Yet other financial centres are also hoping to benefit. I therefore anticipate stiff competition between various locations, so it will be crucial to highlight Frankfurt’s specific strengths to top decision-makers,” adds Professor Brühl.

It is unlikely that the European Banking Authority (EBA) will be able to keep its headquarters in a country outside of the EU. However, it remains to be seen where the EBA will choose as its next location. The majority of the German financial industry (57%) believes the EBA will move to Frankfurt. However, 33% of respondents expect the EBA to relocate to another city.

The German financial industry is also anticipating certain bottle-necks in case business activities shift from London to Frankfurt. Almost three quarters of those surveyed (72%) point to a shortage of living space; half (53%) are concerned about having enough qualified personnel; 27% believe the transport infrastructure may not be sufficient; 22% point to the availability of office space. By contrast, only 11% see Frankfurt’s IT infrastructure as a potential bottle-neck.

Majority of the financial industry in favour of limiting Britain’s access to the EU interior market and expects a Brexit to have neutral to positive impacts on the German economy

In the opinion of most financial institutions and service providers surveyed (68%), the EU should not grant Britain unrestricted access to the EU interior market after a Brexit. By contrast, 22% advocate not introducing any restrictions in spite of a Brexit. Around half the respondents (48%) regard the potential impacts of a Brexit on the German economy as neutral, while 35% see them as positive. Just 15% are anticipating negative impacts.

The results are based on a quarterly management survey of around 400 companies in the German financial sector.
The Center for Financial Studies (CFS) conducts independent and internationally-oriented research in important areas of Financial and Monetary Economics, ranging from Monetary Policy and Financial Stability, Household Finance and Retail Banking to Corporate Finance and Financial Markets. CFS is also a contributor to policy debates and policy analyses, building upon relevant findings in its research areas. In providing a platform for research and policy advice, CFS relies on its international network among academics, the financial industry and central banks in Europe and beyond.

ARD’s Plusminus on the current Brexit Debate

Currently, one of the most discussed topics is the UK referendum regarding a possible exit from the European Union. On the most recent episode of ARD’s business programme Plusminus, the segment “Goodbye Great Britain? – Where the Germans profit from a Brexit” explored the possible effects of a Brexit for the Financial Centre Frankfurt.

“We do not wish for a Brexit to occur. It would be terrible for Germany, Europe and Great Britain. However, should it come to pass, it would be a clear opportunity for the Financial Centre Frankfurt”, explained Hubertus Väth, Managing Director of Frankfurt Main Finance during the broadcast.

The broadcast continued to illuminate certain criteria which already make the Financial Centre Frankfurt an optimal location. Taking in the imposing tower of the European Central Bank headquarters, it is clear that Frankfurt is not just Germany’s most important Financial Centre, but also one of Europe’s. Several other institutions with their headquarters in Frankfurt, like the European Insurance and Occupational Pensions Authority and the European Systemic Risk Board, also lend to the Mainmetropolis’s clout as a Financial Centre. The financial decisions made in Frankfurt resonate across the continent.

In addition to its institutional prominence, Frankfurt’s superior infrastructure offers a competitive advantage not enjoyed by all other cities. Frankfurt boasts dependable, fully integrated exchange trading systems and is the technological leader in payment transactions. Furthermore, Frankfurt is considered the world’s largest data exchange point, with peak rates of 5.1 Terabytes per second. This is essential for practitioners in the financial sector who require lightning fast and reliable connections for data transfers and transactions.

The Main Metropolis offers additional decisive advantages, like the availability of affordable office space, a deep field of service providers, top academic institutions and one of Europe’s best-connected transportation networks. Short and sweet – Frankfurt is ready to roll.

View a video of the report and read the attached article here.