Plaid leader discusses the virtues of international fintechs having European headquarters. They highlight why they chose London and Amsterdam and the benefits of being close to customers and hiring talented individuals. They also talk about the importance of in-person collaboration and London's standing as a fintech hub. The impact of Brexit and growth plans in Europe are also discussed.
London's fintech ecosystem makes it a top choice for fintech companies' European headquarters.
Proximity to customers and access to talented workforce were key factors in selecting London and Amsterdam as European hubs for Plaid.
Deep dives
European Headquarters Selection Criteria
In this podcast episode, two guests, Zach Lambert and Manuel Sanhoeffer, discuss the factors behind selecting specific cities as European headquarters for global FinTech companies. They explain that the choice of a city is based on factors such as access to financial ecosystems, presence of talent, regulatory environment, and proximity to customers. While Nium chose London as their main European hub due to its fintech ecosystem, access to banks, and being a hub for their biggest clients, Plaid prioritized being close to their customers and hiring pools, leading them to establish offices in both London and Amsterdam.
London as a Fintech Hub
Despite recent criticism from some fintech industry figures, Zach Lambert and Manuel Sanhoeffer express optimism about London's status as a fintech hub. They highlight London's position as a global financial center, access to a strong VC ecosystem, progressive regulations, and favourable talent pool. They believe that London's ecosystem, including government, regulators, central banks, and fintech companies, contributes to its attractiveness for fintechs. Brexit has had some impact, particularly on licensing and passporting, but both guests maintain a positive outlook on London's fintech potential.
Work Structure and Office Space
Regarding work structure and office space, both Nium and Plaid follow a hybrid model, allowing flexibility with remote work. They emphasize the importance of in-person collaboration and cross-functional meetings. While Nium encourages its teams to spend around three days a week in the office, Plaid finds that their employees prefer being in the office for increased productivity. Both companies have office spaces that accommodate their staff and foster collaboration and community-building. Despite reports of companies reducing office space, Nium and Plaid maintain a positive stance on office presence and its impact on their operations.
Last month, Singapore-based Nium announced that it had chosen London as its European HQ while US fintech Plaid has dual European headquarters in London and Amsterdam.
The two executives discuss the virtues of their international fintechs having European headquarters and why they chose the cities they are located in.
Sandhofer says:
“London is proving to be one of the best ecosystems for fintechs overall.”
Lambert says:
“The two top priorities for us are, one, being very, very close to our customers and the people we think should be our customers and then, two, being very, very close to hiring pools of super talented people that want to work directly with those customers in both markets.“And London and Amsterdam were pretty obvious choices for us.”
Lambert adds that London and Amsterdam stand out for their “fintech presence”, adding that London is “a kind of a behemoth”.
Sandhofer says that in European cities outside of London and Amsterdam, where Nium also has a hub in, it is “harder to find talent which is willing to work only in English”.
On having dual headquarters, Lambert says:
“The challenge of a dual headquartered set up is obviously when teams are physically disparate it might be difficult to foster conversation.“I think that has been very untrue for us, particularly because we are aware of the risk.”
The pair also discuss their current working practices, the benefits of hybrid working and whether they plan to open further European offices.
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