Overview
Emerging technologies are driving the development of transformational and innovative products, services and business models in Fintech. Artificial Intelligence, DLT/Blockchain, Big Data analytics, cloud computing, are creating higher levels of personalisation, as well as greater access to a wider choice of products and services, while increasing operational and cost efficiency.
Trends
AI, DLT/Blockchain, Big Data and IoT are all bringing the Fintech sector to an era of automation, connectivity and hyper-personalisation. Financial technology is spurring not only the creation of new start-ups and scale-ups, but also the revamp of traditional banking through the implementation of new technological processes and solutions.
Alongside payment services (including online banking services, contactless payments and distance opening bank accounts) and electronic money, cryptocurrencies continue to play a relevant role in today’s societies, together with the increasing use of community or local currency. Likewise, crowdfunding is also increasingly relevant as a means for financing new ventures. The provision of Fintech innovative services has sparked interest not only by traditional banking and finance actors, but also by new stakeholders outside of this sector, such as tech and telecom companies, which are developing applications and services taking advantage of their know-how, technological infrastructure and customer base, which is global in many cases.
The exponential pace of innovation and the growing digitalization in the Fintech sector are spurring competition in the global market and are revolutionising the sector.
Legal Challenges
New legal and regulatory challenges arise from the increasing digitalisation, automation and connectivity in the sector:
Digital transformation may expose the financial services market to additional systemic and external risks that may contravene the integrity of the market.
The deployment of novel technologies together with close collaborations with other entities may expose organisations to additional risks related to third-party activities and products, such as operational failures and malpractices.
The new fast-moving Financial Services ecosystem may be exposing consumers to additional risks, such as misinformation, data protection and security, which need to be mitigated.
The complexity of technologies such as AI and machine learning, DLT and Blockchain may blur the regulatory and legal obligations that were built on traditional relationships requiring regulatory certainty whilst ensuring that innovation is not hindered.
- Regulatory & Compliance
- Technology integration, Outsourcing & Partnerships
- IP & Trade Secrets
- Data (personal and non-personal) & Cybersecurity
- Consumer Protection & Liability
- Testing of new technologies
Step-by-step
What?
Forces driving the market
Robo-advisors, artificial intelligence and machine learning, DLT and Blockchain, are increasing the efficiency and effectiveness of the organisations.
Cloud computing, data mining and analytics are bringing added value to the operations throughout the value chain.
Apps, social networks, sensors, smart devices and wearables are establishing market trust.
From on-demand and pay-per-use services to P2P lending and crowdfunding, e-payments and cryptocurrencies, the financial services ecosystem is everchanging.
How?
Can we help you
VdA has vast experience and strong expertise in all policy, legal and regulatory matters associated with Fintech. Our tech and industry insights allow us to provide 360.º legal services to organisations, governments and regulators:
- Banks
- Payment service providers and electronic money institutions
- Crowdfunding platforms
- Crypto-assets and wallet providers
- Credit card companies
- Investment companies
- Developers and technology suppliers
- R&D institutions
- Incubators and accelerators
- Investors
- Insurers
- Brokers
- Governments
- Regulators
Our team of experts is delivering strategic and sophisticated legal advice to help our clients on their most challenging and promising projects. With a track-record of advising complex projects for leading companies in the sectors, as well as for the public sector, VdA services include:
Private sector:
- Advising on regulatory and compliance issues for developing, testing and deploying technologies in the Financial Services sector, including FinTech applications and services
- Advising on data (personal and non-personal), cybersecurity and liability issues, as well as on IP protection, technology partnerships and transfers
- Drafting and negotiating contracts for development, sale and purchase, provision of services, including terms of service and privacy policies for digital solutions
Public sector:
- Drafting policies, strategies and laws for several Financial Services issues, including in relation to regulatory sandboxes, innovation hubs and experimental clauses for new technologies
- Advising on public contracts: administrative contracts, public tenders, pre-contractual proceedings
- Negotiating partnerships and memoranda of understanding with governments, institutions, agencies and the private sector
Our Fintech Roadmap Product
The Digital Finance Toolkit is a turnkey set of services that integrates several modules our clients can choose from in accordance with their needs.
- Testing Package
- Monitoring & Compliance Programme
- Technology & IP Programme
- Data & Cybersecurity Programme
- Consumer Protection & Liability Package
Our team of experts
The disruption of the Financial Services ecosystem raises complex challenges that require a holistic and sophisticated legal analysis.
We help our clients meet their goals through our cross-sector Fintech team that brings lawyers from our ICT, Banking & Finance, Data & Cybersecurity, and M&A Practice Areas. In addition, to deal with the complex challenges brought by resorting to technologies in the sector, our team further works routinely with our colleagues from Tax, Public Procurement, Projects, Insurance and IP, among others.
Why?
Specialised knowledge is required
The opportunities and challenges of the Finance sector, including those arising from the deployment of emerging technologies and the lack of regulatory certainty, are complex. Specialised knowledge is required for the development and deployment of digitalization strategies. VdA is especially knowledgeable of the opportunities and challenges brought by Fintech in Europe and in Africa.
VdA is well aware of the opportunities and challenges of the Fintech sector in Europe, including those arising from the provision of payment services and e-money services with PSD2, cryptocurrencies and crowdfunding. VdA is closely accompanying the discussions, both at EU groups and initiatives, on these matters, such as the European Commission’s Digital Finance Strategy, including the Proposal for Regulation on Markets in Crypto-assets (MiCA), the Proposal for Regulation on digital operational resilience for the financial sector (DORA) and the Proposal for a Regulation on a pilot regime for market infrastructures based on distributed ledger technology. VdA is also following the relevant work of the EU Blockchain Observatory and Forum and of INATBA – International Association of Trusted Blockchain Applications. VdA is also aware of the approach many European countries are taking on Fintech, including when it comes to regulatory sandboxes.
In addition, VdA has detailed know-how on the challenges brought by Fintech services when it comes to data (personal and non-personal) and cybersecurity, including the ones resulting from the European Data Protection Board Draft Guidelines on the interplay of the Second Payment Services Directive and the GDPR, the Proposal for a Regulation on digital operational resilience for the financial sector (DORA), and the cybersecurity requirements arising from the applicable legal and regulatory framework, including the proposed new Directives on cybersecurity and resilience of critical entities.
VdA has relevant experience in advising Governments on the setup of legal frameworks for testing new technologies in the Finance sector, notably through innovation hubs, regulatory sandboxes and experimental clauses. VdA also advises companies in the deployment of Fintech services, taking into consideration also other relevant legal and regulatory frameworks, including, for instance, on data economy, cybersecurity, Intellectual Property, tax, software licenses, hardware supply, consumer protection, among others.
Financial technology plays a central role in African countries especially when it comes to mobile financial services, given its importance for ensuring accessible banking/payment services even in remote regions with no bank agencies. Indeed, it was in Africa that the first mobile payment service was launched, taking advantage of the high penetration rates of mobile communications. Interest in cryptocurrencies and crowdfunding as a means for financing private activities is also rising, with countries also showing interest in regulating these new realities.
Moreover, finance is also identified by the African Union as one of the means for realizing the Aspirations of the African Union Agenda 2063: “The Africa we Want”. In this regard, the United Nations’ Economic Commission for Africa (ECA) has identified the importance of promoting digital finance, specifically financial technology start-ups in Africa.
VdA has relevant experience in advising Governments on the setup of legal frameworks for testing new technologies in the Finance sector, notably through innovation hubs, regulatory sandboxes and experimental clauses. VdA has also advised African governments in setting up legal frameworks for payment and mobile services.
VdA also advises companies in the deployment of Fintech services, taking into consideration also other relevant legal and regulatory frameworks, including, for instance, on data economy, cybersecurity, Intellectual Property, tax, software licenses, hardware supply, consumer protection, among others.
When?
Can we do it for you
Assisting you in devising the best approach and models for your business, project, product and service, in the light of legal and regulatory opportunities and constraints.
Assisting you in the development and setting-up of your business, project, product and service, drafting all required documentation, assisting in the negotiation of contracts, interacting with competent authorities, and accompanying you every step of the way.
Assisting you in addressing day-to-day business goals and challenges in the light of the applicable laws and regulations. We are here for you.