EU Passporting Uncertainty a big Headache to UKs FinTech Industry say Covercy

Published by PoundSterling Live


Covercy’s Cohen tells Pound Sterling Live FinTech and financial services companies are closely monitoring the Brexit situation to understand whether we will lose our EU passporting rights or not.

The progress made in the international payments sector – one of the brightest beacons in the UK’s FinTech sector – could be arrested should the UK fail to secure a passporting system for its financial services industry says Covercy CEO Doron Cohen.

Cohen started Covercy in 2015 having left his previous career as co-founder and co-CEO of Leverate, a leading forex technology provider.

Covercy was placed in a list of ‘ten of the best businesses’ at this years London technology week and an emerging competitor to industry giant TransferWise in a piece by Forbes.

The company is licensed by the UK’s Finance Conduct Authority (FCA), enabling the company to passport those services in to Europe.

“During my time at Leverate I saw how expensive the SWIFT international payments network was. I knew that it could be done differently – and Covercy was born. Unlike other competitors we offer guaranteed rates to businesses, in real time, meaning they know exactly how much a transaction will cost at first glance,” says Cohen.

According to McKinsey, 95% of international transfers are still carried out by banks confirming this to be a growth area.

Over recent years the number of currency transfer options have grown notably thanks to the ability to ‘passport’ financial services into the EU.

Cohen explains:

“There is one precondition that a company that…