In arguably the biggest upset in the history of UK democracy, the decision for Britain to leave the EU has the nation completely divided. The recent EU referendum has seen a huge contrast in views and votes throughout Britain among different age groups and areas of the UK. We have heard expert analysis and views from members in both the Leave and Remain campaigns but no one knows for sure what the outcome and consequences (if any) will be.
On Friday the UK financial sector went into meltdown with over £200 billion wiped of the stock market within a few hours of the EU referendum results being announced. Many UK financial institutions have been quite vocal when it comes to the EU with many stating that it is vital for Britain and large corporate organisations to remain a part of it.
What impact could Brexit have on the UK
Remember back to last year when Scotland held an independence vote which gave the Scottish people a chance to leave the United Kingdom and become a country in their own right. The UK as a whole was desperate to keep Scotland an integral part of Great Britain and the outcome showed that Scotland was just as keen.
One of the main reasons for Scotland remaining a part of Britain was due to our close relationship with the EU. Now that the recent EU referendum means that Britain will now leave the EU this increases the chances of Scotland holding a second independence vote in order to leave Britain and re-join the EU in their own right.
If Scotland is to gain independence from the UK would they try and attract many of the large financial organisations from Britain who were so vocal about remaining a part of the EU? Rumours are definitely starting to swell with Goldman Sachs and Morgan Stanley reportedly planning on relocating their investment banking operations to Frankfurt, Germany.
How could Brexit affect Payday Loans
At present, Brexit would not have too much of an impact on the UK payday loans industry as many lenders will still be providing loans to UK consumers and will still be governed by the Financial Conduct Authority.
However if Scotland win the right to another independence vote and will likely vote on independence then they will no longer be a part of the UK. Many payday loan lenders offer UK payday loans, so with Scottish independence in the future more likely than ever this may mean that UK lenders can not lend to Scottish consumers as they will no longer be a part of Britain.
This may mean the Scottish payday loans industry is governed by a completely new entity with new lenders likely to enter the Scottish payday loans market.