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What concerns does the Revolut CEO have about the UK stock market?
Nik Storonsky has criticized the UK stock market for its low liquidity and high transaction costs. He believes that these factors make it difficult for UK-based products to compete with those offered in the US, leading to a preference for a public listing in the US for his company.
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How does UK market liquidity compare to the US?
The UK market is currently facing challenges with liquidity, which is significantly lower than that of the US market. This disparity affects trading volumes and investor confidence, making the US market more attractive for fintech companies like Revolut.
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What implications does this have for fintech companies?
The concerns raised by Storonsky highlight potential difficulties for fintech companies operating in the UK. High transaction costs and low liquidity may deter investment and limit growth opportunities, prompting companies to consider listings in more favorable markets like the US.
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What are Barclays' CEO's views on the UK market's decline?
CS Venkatakrishnan, CEO of Barclays, has echoed Storonsky's concerns, noting the long-term decline of the UK equity market. He pointed out that while the UK market has shrunk, the US market has continued to grow, indicating a troubling trend for UK-based financial institutions.
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What recent developments has Revolut made in the UK?
Revolut recently secured a UK banking license after a lengthy approval process, positioning itself for potential growth. However, the challenges highlighted by its CEO regarding market liquidity and transaction costs may impact its future strategies, including a possible public listing.