Financial technology (fintech) firms are seeking to strengthen their legal teams as governments around the world increase regulations and compliance requirements. According to a report in The Economic Times (ET), fintech firms are seeking senior legal and compliance professionals to support their operations in response to the financial uncertainty created by the COVID-19 pandemic.
Industry experts have highlighted the growing demand for legal and compliance expertise in the fintech sector, with several legal professionals recently moving to start-ups in the industry. For example, Aravind Venugopal recently joined Acko as its first general counsel from Khaitan & Co., while Rohan Bhandari joined CoinDcx as its head of compliance after leaving Paytm.
Fintech firms are looking for professionals with experience in law firms, as they bring diversified exposure to working across legal complexities. There is a growing demand for full-time resources in public policy, litigation, regulatory affairs, and environmental, social, and governance (ESG) standards, according to industry experts. The launch of new products and the associated regulatory framework has created a demand for legal experts who not only have knowledge of the law but are also comfortable working in a tech-savvy environment.
The domain of Fintech necessitates a particular skill set that has been previously limited to professionals in banking or finance law. However, due to the surge in demand for legal and compliance experts, the industry is set to attract a more diverse pool of candidates.
Native’s Director of Corporate Functions, Vinal Vikamshi, indicated that fintech firms operating in diverse sectors like lending, payments, investments, trading, and insurance are actively seeking highly experienced legal and compliance experts to manage the intricate and dynamic regulatory environment. The report also highlighted the crucial role of compliance in the fintech sector, as companies aim to circumvent legal and regulatory problems that could have an adverse impact on their business operations.
The mounting demand for legal and compliance professionals in fintech is a testament to the sector’s growing significance in the global economy. As fintech firms keep innovating and disrupting traditional financial services, governments worldwide are striving to ensure that these companies adhere to a transparent legal and regulatory framework. This has brought forth new opportunities for legal experts who possess the expertise to maneuver through these complex regulatory environments and support the growth of fintech.
In summary, fintech firms are focused on strengthening their legal teams to comply with the rising regulations and compliance requirements. The sector seeks highly experienced legal and compliance professionals who have practiced in law firms and are capable of managing intricate and evolving regulations. The advent of new products and the corresponding regulatory frameworks have created a demand for legal experts who can work adeptly in a technology-driven environment. The escalation in demand for legal and compliance professionals is a manifestation of the growing importance of fintech in the global economy.
