Out with the old, in with the new, an idiom as old as time dangerously at risk of falling victim to its own irony? One could argue that within the financial services industry it is easy to speculate that traditional companies would get lost in this new and ever evolving world, having to make way for younger, more innovative companies to revolutionise the way things are done, leaving said conventional financial institutions left by the wayside. However, it doesn’t seem that this will be the case, with around a quarter of all peer-to-peer lending platforms involving institutional capital, the relationship between fintech and tradition financial services appears to be more symbiotic than most people would have predicted
So, what does this mean for the fintech sphere? Well, the answer in short is growth and change. With the fintech industry having an expected CAGR of 26.5% during the forecast period of 2022-2030, there is no doubt that the industry is on a rapid upwards trajectory. In the post Covid-19 outbreak world, 70% of the UK’s populous now use less cash than they did pre-pandemic and the fintech industry heard the call to arms with 92% launching or in the process of launching new related products and services.
The pressing question is how this relates to legal sphere and, subsequently, recruitment? With the accelerated growth rate of this sector and services comes the demand for legal functions to shore up its backbone. As with any In-house legal role there is always the need to have a good personality fit for the company and never is this truer than in fintech. This is partly to do with the industry being driven by young, innovative start-ups that have the ability to be agile and responsive in meeting the needs of consumers in an ever-changing digitally led world. This has broadened the scope of roles for both banking and generalist lawyers, as well as paving the way for young lawyers understand the needs of tomorrow in a rapidly changing, technology-focused environment.
So how are we adjusting to this new age of lawyer and what do we look for when hiring the right person for the job? There are certain events that occur time and time again within this space and having lawyers equipped with the right knowledge and skills to deal with these issues is paramount. As a whole, they will need to be able to combat and advise on issues such as commercial reputation, intellectual property matters, advise on funding and best practice for consistent good governance. There are also a number of ongoing matters they will consistently have deal with, data privacy, money laundering, cyberattacks and FCA (Financial Conduct Authority) compliance are all buzzwords to look for when analysing a candidate CV for roles.
This boom is nothing but positive. More companies, creating more exciting roles, with more candidates on the market, making life easier for more people, and moreover, not at detriment to traditional financial services.