Ashton Wenborn | World Finance

EU rules Greek deficit is no longer excessive

Posted on September 26, 2017September 28, 2017 by Ashton Wenborn

In a vote of confidence in the sustainability of Greece’s finances, the EU Commission has decided that the country should no longer be subject to disciplinary procedures over its fiscal position. According to the Stability and Growth Pact, the EU’s fiscal rulebook, budget deficits over three percent are excessive, and any member state that consistently exceeds this should be subject to disciplinary procedures.

Toomas Tõniste, President of the European Council, said: “After many years of severe difficulties, Greece’s finances are in much better shape. Today’s decision is therefore welcome.”

While Greece is currently undergoing its third macroeconomic adjustment programme, the country’s general fiscal position has steadily improved since the peak of its deficit in 2009 at 15.1 percent. Last year, its balance moved into the positive for the first time since the crisis, with a surplus of 0.7 percent.

The move is largely symbolic and was broadly expected following the commission’s recommendation in July.

Greece’s general fiscal position has steadily improved since the peak of its deficit in 2009 at 15.1 percent

According to Margaritis Schinas, Chief Spokesperson of the European Commission, it was made on the basis of the substantial efforts undertaken by Greece to consolidate its finances, coupled with the progress made in the Stability Support programme. “Today’s decision further demonstrates that Greece is delivering on its commitments and has returned to a sustainable path,” he said.

According to the commission, Greece’s deficit is expected to remain below three percent. Based on an assumption of policy continuity, the commission’s spring forecast projects a deficit of 1.2 percent for 2017 and a surplus of 0.6 for 2017.

However, Greece is not totally out of the woods. It will remain subject to the preventive arm of the Stability and Growth Pact, meaning monitoring is set to continue. What’s more, its macroeconomic adjustment programme will not be over until August 2018, beyond which post-programme monitoring is expected to follow.

The decision leaves just three member states – France, Spain and the UK – remaining subject to the corrective arm of the Stability and Growth Pact. This is a marked reduction from 2011, when 24 countries fell under the category. If countries do not take substantial action they can incur hefty fines, but as of yet no fines have been issued.

China continues shadow banking crackdown with Guangzhou raid

Posted on September 26, 2017September 28, 2017 by Ashton Wenborn

The Chinese Government has continued its assault on the country’s shadow banking sector following the shutdown of an illegal operation on September 26 in Guangzhou. The organisation, which was operating out of a food market in the city, stands accused of funnelling $70m out of the country in the last month alone.

Local newspaper China Daily reports that more than 10 bank accounts were frozen to prevent further cross-border asset transfers. The area around Guangzhou has become something of a hotbed regarding illegal financial activity in 2017.

Three large underground banks have already been shut down in the south China province this year and more than 30 suspects have been detained.

The recent closures are also part of wider attempts to tackle the climate of shadow banking in the country. In 2016, the Chinese authorities closed 380 underground banks dealing with more than $135bn.

Three large underground banks have already been shut down in the south China province this year and more than 30 suspects have been detained

According to Reuters, the country is particularly keen to stem unofficial financial activity in order to “prevent and resolve risks from cross-border capital flows”.

Shadow banking was also cited as a major contributing factor to 2008’s global financial crisis, but recent claims by high-profile economists suggest that this threat has largely been resolved. However, developing economies such as China remain at risk, particularly as traditional forms of banking are often restricted.

As the government in Beijing attempts to keep a tight rein on new loans, difficulties in achieving credit may push borrowers towards unregulated sources. In fact, the People’s Bank of China reported that shadow banking contributed 15 percent towards all corporate financing at the end of 2016.

Financial institutions need to perform a delicate balancing act if they are to discourage the growth of shadow banking while maintaining economic control. The continued arrests in China indicate that work remains to be done on this front.

Airbus increases footprint in China with new aeroplane completion plant

Posted on September 20, 2017September 27, 2017 by Ashton Wenborn

On September 20, European aircraft manufacturer Airbus opened a completion plant in China, with the aim of meeting surging demand in the world’s fastest-growing aviation market.

The opening comes at a time when increasing passenger numbers are boosting business. Looking ahead, China is expected to spend over $1trn on aeroplanes over the next two decades, Reuters reported.

With this projected growth in mind, Airbus is increasing its footprint in the country with hopes to turn favourable forecasts into profitable orders. Until now, Airbus’ presence in China has been limited to a final assembly line for A320 jets, operating since 2008 in Tianjin, in the north of the country.

The new plant, also located in Tianjin, will focus on the company’s A330, a profitable wide-body jet, the demand for which has slowed in recent years amid an upward trend for more agile planes. Now, Airbus estimates that airlines’ demand for large planes could reach 60 to 100 over the next five years.

Airbus is increasing its footprint in the country with hopes to turn favourable forecasts into profitable orders

The strategic move is a joint venture with two Chinese companies – the Aviation Industry Corporation of China and Tianjin Free Trade Zone Investment Company – and is the materialisation of an agreement first made in 2014, when President Xi Jinping visited France, home to Airbus’ headquarters.

As with operations worldwide, the European aerospace firm will also face competition from Boeing in China. The US rival plans to build a 737 completion plant to increase its presence in the China, in partnership with Commercial Aircraft Corp of China.

The market seems to have room for both. According to the International Air Transport Association, there will be a sharp growth in Chinese air travel in the next 20 years, with passenger numbers reaching a record 1.3 billion, from 817 million in 2016.

Tata Steel and ThyssenKrupp merger creates Europe’s second-largest steel producer

Posted on September 20, 2017September 26, 2017 by Ashton Wenborn

German steel firm ThyssenKrupp and India’s Tata Steel announced a non-cash merger on September 20 as part of a 50/50 joint venture. The two companies’ joint European operation, which will trade under the name ThyssenKrupp Tata Steel, is expected to be operational by late 2018.

The merger has been in the offing some time now, but Tata’s £15bn ($20bn) pension scheme had proved a major stumbling block. However, a recent agreement with regulators and employees allowed negotiations to go ahead. The new company, which will become Europe’s second-largest steelmaker, is predicted to have an annual turnover of €15bn ($18bn) and consist of 48,000 members of staff spread across 34 locations.

The proposed merger is accompanied by some harsh economic realities. Although the two companies envision annual cost savings in the region of €600m ($721m), they will also be sharing approximately 4,000 job cuts, to be divided between administration and production teams. The merger comes at a time when difficult choices need to be made in pursuit of efficiency.

Although the two companies envision annual cost savings in the region of €600m ($721m), they will also be sharing approximately 4,000 job cuts, to be divided between administration and production teams

“We will not be putting any measures into effect in the joint venture that we would not have had to adopt on our own. On the contrary: by combining our steel activities, the burdens for each partner are lower than they would have been on a stand-alone basis,” explained Dr Heinrich Hiesinger, CEO of ThyssenKrupp.

In his statement, the CEO alluded to the current financial difficulties facing the European steel market. Cheap imports, predominantly from China, have depressed prices and dented profitability.

Although the merger could prove promising for some of Tata’s struggling steelworks, including the Port Talbot plant reported to be losing £1m ($1.36m) a day last year, more will need to be publicised regarding the new company’s business plan. Until then, the steel industry’s uncertain future looks set to continue.

Toys R Us files for bankruptcy in the US

Posted on September 19, 2017September 27, 2017 by Ashton Wenborn

On September 18, Toys R Us, the largest toy retailer in the US, filed for bankruptcy for its operations in the country, overwhelmed by debt and hit by increasing competition from online retailers.

The toy store chain became the latest brick-and-mortar retailer affected by changing consumer habits in the digital era. Customers’ proclivity for online shopping has impacted other players like Danish toy maker Lego which, earlier this month, announced plans to cut 1,400 jobs from its global workforce after its first sales fall in 13 years.

Now, Toys R Us’ bankruptcy filing casts doubt on the security of its 64,000 jobs and 1,600 stores, although the company has not yet announced any closures. According to Reuters, in a statement, the company said its stores and e-commerce sites are open for business.

Michael Freitag, a spokesperson for Toys R Us, told Bloomberg: “Like any retailer, decisions about any future store closings – and openings – will continue to be made based on what makes the best sense for the business.”

Now, Toys R Us’ bankruptcy filing casts doubt on the security of its 64,000 jobs and 1,600 stores, although the company has not yet announced any closures

Meanwhile, the company made clear that the filing only includes operations in the US, meaning that licensed stores and partnerships outside the toy retailer’s home country are not part of the bankruptcy.

Once part of the Fortune 500 ranking, Toys R Us has now started legal proceedings in the US Bankruptcy Court in Richmond, Virginia. In the documents submitted, it declared debt and assets greater than $1bn each, Bloomberg reported.

Neil Saunders, managing director of market intelligence firm GlobalData Retail, said: “While today’s decision does not necessarily mean it is game over for Toys R Us, it brings to a close a turbulent chapter in the iconic company’s history.”

In addition to online competition, which has reduced the number of customers walking into stores in recent years, the company’s filing for bankruptcy was also attributed to a $6.6bn buyout in 2005 that increased Toys R Us’ debt.

Obligations in the near future include bonds, the prices of which collapsed during this month, that are due in 2018, Thomson Reuters data showed.

Central banks look to launch own cryptocurrencies

Posted on September 18, 2017September 26, 2017 by Ashton Wenborn

While cryptocurrencies like bitcoin and Ether enjoy an enormous surge in interest, several central banks have been quietly exploring the idea of creating their own digital currencies.

A publically available digital currency issued by a central bank would be totally unchartered territory, but would do away with the inherent volatility of traditional cryptocurrencies while retaining their anonymity and peer-to-peer capabilities. And yet, as the Bank for International Settlements outlined it its recent special feature report, they would also have far-reaching economic implications, such as potential bank runs and changes to monetary policy.

A publically available digital currency issued by a central bank would be totally unchartered territory, but would do away with the inherent volatility of traditional cryptocurrencies

The report outlined the theoretical example of ‘Fedcoin’: “Unlike bitcoin, only the Federal Reserve would be able to create Fedcoins and there would be one-for-one convertibility with cash and reserves. Fedcoins would only be created (destroyed) if an equivalent amount of cash or reserves were destroyed (created) at the same time. Like cash, Fedcoin would be decentralised in transaction and centralised in supply.”

As the report notes, the introduction of digital cash could cause consumers to forgo commercial bank deposits and instead opt to bank directly with the central bank. This could render banks less able to perform “essential economic functions”, like monitoring borrowers. Another danger is that bank runs could occur more quickly if people were able to easily convert their bank deposits into risk-free central bank liabilities.

“In making this decision, central banks will have to consider not only consumer preferences for privacy and possible efficiency gains – in terms of payments, clearing and settlement – but also the risks it may entail for the financial system and the wider economy, as well as any implications for monetary policy,” the report concludes.

Opening up Angola’s informal sector

Posted on August 25, 2017September 4, 2017 by Ashton Wenborn

The informal economies of developing nations are often the unsung heroes of job and wealth creation, creating millions of jobs in Africa. In some countries, they create more jobs than the formal sector: for example, in Angola up to 60 percent of jobs are part of the informal sector.

The region’s immature financial services sector makes it particularly difficult for informal businesses and entrepreneurs to build a credit history and borrow from banks. Those that can suffer from high interest rates.

The reality is that these businesses contribute billions to the national economy through salaries paid and goods bought. In Africa, the sector represents at least 41 percent of continental GDP. This figure reflects the even greater potential that the informal sector would have if it were to become formalised.

Migrating to the formal system
Part of the solution lies in facilitating policies to help legalise informal businesses and grant access to the benefits that formal businesses enjoy. The Angolan Government has already started on this journey. Policy changes include the PROAPEN programme, which aims to develop and establish small-scale businesses by granting credit facilities to micro-entrepreneurs. Measures such as these can go a long way in developing the informal sector.

Fiscal strategies are an important tool that should be embraced. Extending new lines of affordable credit for small businesses, addressing constraints related to registering property and easing red tape for construction permits all make it easier for small businesses to get started.

Encouraging informal businesses to sign up to a social security scheme also acts as an incentive for them to migrate to the formal system. In Angola, the government has created a new way for small growing businesses to gain access to funding through an innovative state-backed fund.

Extending new lines of affordable credit for small businesses, addressing constraints related to registering property and easing red tape for construction permits all make it easier for small businesses to get started

Fundo Activo de Capital de Risco Angolano (FACRA) helps commercially viable, promising businesses to meet with a range of foreign investors who are themselves looking for opportunities to invest in the country. FACRA also goes above and beyond the role of a traditional venture capital by supporting skills development. For investors, it offers an orientation on regulatory questions about the national entrepreneurial culture.

The fund is an ideal partner to foreign companies and investors, acting as a gateway to the best opportunities and a potential lifeline to informal businesses keen to make the transition to the formal sector.

Creating investment opportunities
One significant benefit of encouraging businesses to make the transition is that the number of investment opportunities in the country rises, making the market increasingly attractive to investors. Furthermore, the millions of people employed in the sector will gain greater protection under the law and have their income formalised. This will allow them to access previously unavailable financial services, helping to reduce the number of unbanked citizens.

Governments should also be cognisant of the fact that individuals running businesses in the informal sector are often stigmatised – national governments must therefore tread a careful path in encouraging informal business owners to come forward.

With millions of people working in the sector, there are thousands of highly talented entrepreneurs and innovators – this is especially important because national governments and ordinary people have much to gain by unleashing the potential of local entrepreneurs and big thinkers. It is time for them to be embraced by policymakers and the investor community so that everybody can benefit.

From followers to customers: a banking master class

Posted on June 14, 2017November 1, 2019 by Ashton Wenborn

Antonio Gaioso Henriques, VP of Activo Bank, illustrates how Activo Bank has launched itself into the realm of social media in order to engage with its customers and tailor-make its product. With the dual purpose of conducting extensive market research and promoting financial literacy, Antonio set out Activo Bank’s hope of turning followers into customers.

World Finance: What’s been the driving force behind these social media initiatives?

Antonino Gaioso Henriques: We are a remote bank that want to have close relations to our customers and that want to know what the customers or potential customers, in general, what they need. What are their interests and we want transform those potential to customers. The main initiative is to know the people of our strategic market segment, which are basically the Millennials.

World Finance: You are connecting with a lot of people, you’re producing a lot of content across your social media channels. Are the conversations you’re starting sometimes more important than the customers you’re gaining?

Antonino Gaioso Henriques: No, we have a very important one, word of mouth and we have a very important recommendation from our customers that impacts very positively on those non-customers, but with the interest following Activo. Our goal is to convert to customers all the followers that we have.

World Finance: I mentioned at the top the Facebook live video chat that you are doing now; where did this idea come from and how effective has it been?

Antonino Gaioso Henriques: In the beginning, where we have some of our staff coming from TV, it was an original idea that we have; so far it has been very successful and different. It’s banking in a way of financing literacy. The purpose is not to sell product but to [make] literate our potential customers.

World Finance: The Activo Bank brand is all about simplification; how are you making your client’s lives simpler?

Antonino Gaioso Henriques: We don’t want to have many products; our goal is to keep it simple. Sometimes it’s difficult to conciliate simple and go behind what the client needs. But simple products are very intuitive and very ready to use; that’s the idea and our client satisfaction index is one of the greatest in Portugal.

World Finance: Can you talk to me about some of products that you are creating?

Antonino Gaioso Henriques: From loans to deposits or investments, everything is very simple and very intuitive; anybody with very good financial knowledge can access and can decide what to do or to buy the product.

World Finance: And I suppose, by having all these conversations on social media with your customers and your potential customers, that’s market research as well; you understand their needs.

Antonino Gaioso Henriques: Yes, which is important for a bank which is remote banking but that wants to be very close to its customers. It’s to have the inside of the customers and we want to be part of their lives, when they want to buy a home when they want to buy a car.

World Finance: Antonio, thank you.

Antonino Gaioso Henriques: Thank you.

Popstar Will.i.am hired as strategic advisor to Atom digital bank

Posted on April 25, 2017April 25, 2017 by Ashton Wenborn

On April 24, digital banking start-up Atom announced it had hired international popstar Will.i.am as a strategic advisor in a deal worth £4m ($5.1m). Speaking of the appointment, the Durham-based organisation said the star would offer “an external perspective on culture, philanthropy and technology”.

Launching last year as the UK’s first mobile-only bank, Atom has become renowned for its attractive interface and easy-to-use features, offering its customers a number of services including savings accounts and business loans.

The news of Will.i.am’s appointment has not come
as a surprise to some, after rumours emerged in February

Will.i.am boasts some impressive digital credentials too, having launched a series of smartphones and watches, as well as being named T3 magazine’s Tech Personality of the Year in 2016. Atom’s collaboration with Will.i.am further emphasises the bank’s hunger to attract a younger, digitally-savvy audience.

The news of Will.i.am’s appointment has not come as a surprise to some, with Sky News suggesting the musician might join Atom in February – the bank initially denied the rumours.

It is reported that as part of the new deal, Will.i.am will have the option to acquire up to 3.55 million shares in the bank – at a price of £1.15 ($1.47) per share during a three-year window. Speaking of his new role, Will.i.am said “the banking industry hasn’t kept up” with digital trends, although Atom’s technologies were “awesome”.

In an increasingly technological age, it has become important for financial institutions to demonstrate their interest and understanding of cultural trends. Should Atom’s appointment prove to be a success, we may well see other institutions leveraging – as the Will.i.am song goes – that power.

Digital banking propels Chile’s economic growth

Posted on April 13, 2017August 24, 2017 by Ashton Wenborn

Over the past decade, Chile has become one of the fastest growing economies in the whole of Latin America. Despite dipping GDP in 2014 and 2015 – due to a decline in the mining industry – poverty has reduced significantly in recent years, while shared prosperity has risen. According to the World Bank, further economic expansion can be expected, with GDP growth predicted to increase by 2.1 percent this year as a result of rising copper prices and private investment.

Amid this landscape of solid fundamentals, economic development in Chile is supported further by the country’s robust banking sector. In fact, in MorningStar’s Banking System Stability Score, Chile was ranked as one of the world’s best, scoring ahead of Germany, the UK and the US. Also aiding prosperity among the population is Chile’s rigorous financial inclusion policies, which include financial literacy programmes, consumer protection regulations and welfare benefit payments.

Also aiding prosperity among the population is Chile’s rigorous financial inclusion policies

Onward innovations
Chile’s enviable banking sector and robust financial inclusion framework can be largely attributed to its whole-hearted approach to embracing new technology. For example, person-to-person payments are incredibly easy to perform, much easier than they are in, say, the US. By simply entering the recipient’s ID number and bank account details, payments arrive instantly and fee-free.

In line with rapidly changing consumer expectations, digital platforms have become integral to a bank’s service and product offerings. The omni-channel approach adopted by Chilean banks enables customers to interact with their service providers in any way that best suits them best, 24 hours a day, 365 days a year. Usability is also key, thus allowing all members of Chilean society to interact with financial institutions.

Apps ahead
One bank making bold strides in terms of its technological offerings is Banco de Chile, the country’s second largest financial institution after Santander Chile. What’s particularly impressive about Banco de Chile’s digital banking offerings is its wide array of easy-to-use mobile applications that are both fast and secure. For example, customers can manage all of their financial enquiries and transactions by simply using the “Mi Banco” app. With the “Mi Pass” app, every transaction is generated and authenticated with a unique password, meaning that customers can feel safe when transferring payments from their mobile phone.

The “Mi Cuenta” app enables customers to pay their bills from their mobile device at a simple touch, without even having to register their service providers beforehand. The app also provides automatic alerts that record payments made and notify customers when new payments are due. There is also the “Mi Seguro”, which provides customers instant access to online assistance to basic necessities, such as travel, home, automobile insurance. In the event of a car accident, customers can use the app to submit an insurance claim from the very site of the accident, thereby removing a huge stress for individuals, while offering them reassurance in their time of need.

Through such apps, Bance de Chile and others in the country are helping individuals to manage their finances, and in essence, their lives. By making such platforms so accessible and easy to use, more and more individuals are interacting with financial institutions and receiving the services they are entitled to. With more of the population partaking in the financial industry, Chile’s economy can only continue to leap forward.

Top 5 most innovative digital banks

Posted on April 3, 2017September 13, 2018 by Ashton Wenborn

Just a couple of years ago, the act of transferring money via a mobile banking app was fraught with obstacles. Now, however, customers are expecting far more than just basic services. Biometric identification through fingerprint or face detection is being embraced, while artificial intelligence is finding its way into the most pioneering digital banks.

As banks become increasingly digital, the race to capture the most innovative tech and put it to good use has revved up. We take a look at five of the banks and financial firms that are doing it best.

DBS
DBS has been crowned the world’s best digital bank by the Euromoney Awards for Excellence, thanks to its simultaneous embrace of biometrics, artificial intelligence and intuitive tech. The company has time-saving at the centre of its thinking, so is keen to abolish wasted time for its customers. DBS has also leveraged artificial intelligence to integrate digital banking into people’s everyday lives. Instead of opening up the bank’s app or going into a traditional brick-and-mortar store, all customers need to do is message their bank on WhatsApp or WeChat. Messages such as “how much do I have?” or “pay my mobile bill please” are then received by innovative artificial intelligence tech, which can carry out commands automatically. DBS’ chatbot can also give customers banking tips or provide information like the location of their nearest ATM.

Garanti Bank
Garanti Bank has become a huge leader in Turkey’s banking sector, as a result of its high quality technological services. Its digital enhancement has been driven by developments in the Internet of Things, cloud technology, big data and artificial intelligence. It has worked hard to enhance the capacities of all its branches, offering digital screens for customer use, as well as a seamless, omni channel experience across its banking services.

Nutmeg
Nutmeg is one of the most established of a new series of mobile-based wealth management platforms. It offers a user-friendly platform for investment portfolio management, allowing customers to start from as little as £500. The platform is available online or on a smartphone, allowing people to avoid the usual complexities of wealth management. Customers set their own goals and risk level, and are then provided with an ‘intelligent’ portfolio that can be accessed and tweaked through a simple digital interface.

Mondo
Mondo is another app-based bank that recently became accredited, officially gaining its license in August. The bank makes it possible to open an account without a human conversation, focusing purely on the digital experience. What most sets Mondo apart, however, is its approach to simplifying everything to do with a customer’s finances into a user-friendly app. The app provides a real-time breakdown of spending habits, and enables quick mobile money transfers, as well as being seamlessly integrated with other day-to-day tech, including Uber.

Barclays
With many start-ups leaping forward in the digital space, traditional banks have often lagged behind. However, Barclays has managed to speed ahead of the rest, and its app is consistently among the top-rated banking apps for both Apple and Android. Some neat extras are helping it hold its popularity, like the ‘direct call’ feature that allows customers to get through to an operator that already knows their name and account details.

Five of the world’s most female-friendly banks

Posted on April 3, 2017April 5, 2017 by Ashton Wenborn

The world is more aware than ever before of gender inequality, and the negative impact it can have in workplaces.

When women are not supported by organisations, this not only has a detrimental impact on morale, but can have widespread economic effects too. Consistently, research shows that diversity boosts financial outcomes; McKinsey has found that companies with more women in senior roles perform better.

In spite of this, the financial industry has been sluggish in its commitment to enhancing gender equality, prompting recent criticism from Bank of England Governor Mark Carney.

Carney has reason to be worried; in a sector of two million workers, only 14 percent of the top jobs are taken by women. And, on average, women are paid 40 percent less than men across the industry.

Still, it’s not all doom and gloom – and some companies have taken the initiative in the fight for gender equality, investing in schemes and policies to level out the sexes. We take a look at five of the most female-friendly banks in the industry.

1 – Barclays
Last month, in its report on the most female-friendly companies, job site Glassdoor identified Barclays as a trailblazer. It has been instrumental in enhancing female aspirations, creating a promotion mentoring programme for women. Its management is also keen to get more women into IT careers, through the bank’s networking group Barclays Women in Technology.

2 – First Direct
In the same release by Glassdoor, First Direct was identified as a top employer for women. The online and telephone bank even has its own onsite crèche for female workers. As having children is one of the major barriers to female advancement in the workplace, this has greatly helped many of its employees achieve a work-family balance. In addition, employees have access to a Costa café, staff restaurant, gym and concierge.

3 – Tanzania Women’s Bank (TWB)
TWB has been described as the most women-friendly bank in Africa, with a commitment to empowering women economically and socially. The institution was founded by a number of female entrepreneurs, and is not only keen to promote the interests of staff, but women around Tanzania in many different financial situations.

4 – Bank of America Merrill Lynch
Bank of America Merrill Lynch is renowned as one of the most female-friendly banks in the world, with numerous programmes to promote the advancement of women. It was recently recognised by Bloomberg, in its Financial Services Gender-Equality Index, and has been praised by many for its ability to connect emerging women leaders to mentors and opportunities.

5 – Goldman Sachs
Goldman Sachs has been highlighted by publications such as The Times for its championing of women. One of its most famous campaigns is 10,000 Women – a global initiative that gives female entrepreneurs around the world business and management education, as well as capital, education, mentoring and networking. Every year, it does its utmost to celebrate International Women’s Day.

New Silicon Roundabout development to bolster London’s tech scene as Brexit unfolds

Posted on November 10, 2016April 6, 2018 by Ashton Wenborn

Amid fears Brexit could pull the rug out from under the UK technology sector, a major development – which Hackney Council plans will dominate the north-east corner of Old Street roundabout – could come as much-needed good news for East London’s tech cluster.

The development could help attract more entrepreneurs and digital businesses to Silicon Roundabout

The scheme, which could provide as much as one million square feet of mixed use property, running the length of Old Street from Silicon Roundabout – so named for its proliferation of tech start-ups – to Pitfield Street in the east, could mark a change of fortunes in the area.

Plans are due to be made public in early 2017, but sources close to the council expect a select group of leading architects, thought to include Allford Hall Monaghan Morris, Buckley Gray Yeoman, Squire and Partners and Gensler, will be invited to submit concepts for various phases of the development.

Hackney Council already owns much of the property in the development space, but has begun acquiring strategic sites that fall outside its ownership including the William Sutton Estate fronting the roundabout and the former Nelson’s Retreat pub, which was subject to a compulsory purchase order. It is also believed the council is in negotiations with the Greater London Authority over the site occupied by Shoreditch Fire Station.

The development could help attract more entrepreneurs and digital businesses to the area, which is already the third-largest technology start-up cluster in the world, after San Francisco and New York City. National and local governments have long supported the growth of the area, and that will be of paramount importance as the country tries to manage uncertainty about the effect Britain’s exit from the EU will have on London’s status as a global technology hub.