France is quickly becoming the new hub of finance in Europe after a number of financial institutions have located their headquarters in the country.
This has created a flurry of interest from investors, other financial organisations and a plethora of businesses keen to relocate or run a number of their services and operations from France. This comes in conjunction with many other advantages the country can claim, not least it’s unique geography accessible to much of mainland Europe and the country’s recent status as the top soft power in the world.
Paris hosts leading financial players.
BNP Paribas is a long-established institution dates back 196 years and with €2.1 trillion in assets, business concerns covering 5 continents and millions of customers, it has grown from strength to strength with a range of services comparable to a financial supermarket.
Jean-Laurent Bonnafe, CEO, BNP Paribas
Paris was recently chosen as the new site for this highly prized European financial agency, and this is yet another coup for French president Emanuel Macron who is leading the charge to make Paris a premier financial centre.
Societe Generale is a multinational finance organisation is based in Paris and was recently awarded a number of prestigious prizes in the Euromoney Awards for Excellence in 2018. The organisation is a universal bank covering financial services, corporate and investment banking as well as securities and asset management services.
Credit Agricole is an institution has historical links to the farming industry, comprises of a network of cooperative and mutual banks, and prides itself as belonging to customers and the firm is driven by this ethos.
France is now welcoming fintechs.
The world financial sector has been centred around London for a number of decades but since Brexit and the rise of the French economy and the election of Emanuel Macron that looks set to change. Fintech is the nickname given to the emerging financial technology sector that has become prevalent in the digital age and has completely revolutionised banking and financial services.
As Brexit grows ever closer, the reality is starting to hit home and many investors have lost confidence in the UK as they see financial services, banks and businesses start to relocate to European countries. Macron has recognised this as a opportunity to attract more businesses in conjunction with a number of enquiries that have already been made by companies wanting to expand into the French market or actually move there.
France has good reason to be confident that many more fintechs may move in their direction. France has made it easier for fintechs to set up under a certain threshold without the bureaucracy of regulators, and the country has reformed complex employment laws.
The country offers privileges for techie entrepreneurs such as the ‘Tech Ticket’ package offering grants, visa facilities and a fast-track through certain administrative procedures. This includes new measures such as Finance Innovation for financial companies; super-speed internet and a healthy investment climate for businesses. There have been a number of reductions including tax cuts for companies who employ staff in France, and there will be further reductions in startups that distribute shares to their staff members.
Is it the best financial climate?
By the conflation of a number of events including the new French president, Brexit, and a number of reforms in the French administrative and tax systems, Macron has set the scene for a healthy financial climate that is certain to attract many more financial companies, businesses and investors. It is becoming increasingly feasible that Macron’s dream of making the country the new financial capital of Europe will be realised in the near future!