Technology has started to play a key role in the vast majority of financial entities. Today’s financial industry is quite different from what it used to be a few years back, and the changes that have occurred are mostly linked to tech innovations.
The fintech industry continues to progress even further, and many people have had to gain out of it. The legal field is one of the areas impacted by some of the fintech trends circulating at the moment. Lawyers are becoming more interested in exploring the world of fintech, and there are a couple of powerful reasons why.
But what exactly are the trends that present most appeal to lawyers? How are financial technologies directly impacting attorney activities? The following industry details have been connected with legal practices from one reason or another:
Peer to peer networks – eliminating the need of middlemen
A mega trend of the financial industry remains peer to peer networking. These networks are known to contain an impressively large amount of info, and by eliminating the “middleman”, this entire system can become more financially advantageous and efficient.
This is viable for the legal sector as well. Networks where legal experts can share and exchange information, stay agile, and secure financial investments by the book. Traditional startup models aren’t longer the only option available, and peer to peer fintech networks have certainly become of great use for lawyers and attorneys wanting to maintain close, resourceful connections.
Tailored financial solutions promoting self-empowerment
Self-empowerment has become one of the fintech trends most often discussed over the last few years. Financial institutions are all looking into this particular industry movement – companies are offering tailored financial solutions, overcoming the monopole of traditional banking territory.
Traditional financial services are being revolutionized, and new innovations are presented, attracting clients to fintech companies. The online legal industry hasn’t been left behind here and has fully embraced the self-empowerment trend by using financial DIY tools. From a regular criminal defense attorney San Diego to personal injury representatives, all legal professionals are taking full advantage of legal resources and legal processes now easily accessible. This allows them to boost their practices and develop their careers further. As legal professionals adapt to fintech implications, they are able to experience a wide range of benefits.
One of the mega-trends that don’t come that often into discussion, but has had one of the biggest roles is transparency for financials. There has always been a high demand for transparency in the financial sector on a worldwide scale, and thanks to financial technology, things have actually improved in this department lately. With monetary service progression, people are able to understand the financial domain better, and are no longer faced with concerns in regards to potential banking irregularities.
In the legal domain, this has also been a significant problem in the past. Legal firms are pressured by clients to ensure more financial transparency, and beyond that, service transparency in general. Alternative fee charging systems have started to be implemented by legal firms.
Everyone has acknowledged the need for clear, honest and simple billing systems, and with the help of financial technology, more lawyers are able to provide their clients with what they are asking for in this department.
Considering the increased demand for financial technologies, and how popular this modern, digital approach to monetary actions has become lately, a wide variety of new startups are emerging on the market regularly. What does that mean for lawyers? A boost in demand for regulatory legal advice
In order for fintech companies to function into the industry legally, they are required to meet a wide range of rules and regulations. For the average startup, being aware of all legal demands and implications inset easy and that’s way, collaborating with an attorney becomes critical.
Fintech laws are far different from bank regulations, and hiring a regulatory counselor is the only way startups are able to handle every single process correctly, without being exposed to potential legal concenters.
Those working in the legal field have begun to adopt a regulatory status, in order to expand their professional reach. Regulatory attorneys usually have the following responsibilities:
- Advising on the actual legality of a proposed business model. Fintech startups are starting to deal with just as many regulatory demands as banks and traditional financial institutions.
- Helping startups navigate through complex registration processes, saving them time and helping them get in contact with reputable regulatory agencies.
- Advising on the applicability of different state regulations for various business models.
- Explaining the regularity context where their potential bank partners operate
- Representing fintech clients dealing with legal issues.
- Offering support in regulation-related litigations
Fintech entrepreneurs are always recommended to work closely with a legal representative, so naturally, more attorneys are looking into a professional shift to take full advantage of the professional opportunities available within this industry.
More opportunities for banking and generalist lawyers
Since fintech has become a stand-alone financial sector, the scope of roles for generalist lawyers, but especially for banking attorneys has been significantly broadened as well. Financial services are required at every step, and as fintech companies continue to grow, their needs in the legal apartment expand as well. That means, lawyers have so many more opportunities nowadays, than they would have a few years ago.
Usually, fintech startups are looking to collaborate with lawyers that are characterized by adaptability, tech interest and a relaxed financial skillset outlook. Attorneys functioning in the fintech sector certain benefit from amazing career development opportunities.
Fintech has truly changed the way people handle finances, and has impacted a wide variety of domains, including the legal field. There are multiple factors that trigger the interest of lawyers, when it comes to the latest fintech movements, and the trends highlighted above have been explored by legal experts in recent years.
With the boom of financial technologies, the need of legal advice also increases so naturally, those working in this field of practice should keep up with the latest monetary trends of the digital world.