The fintech industry is booming, fueled by the acceleration toward a cashless society. Here, we find out how the Firm is flourishing in the sector and why our newly established Fintech Interest Group will strengthen this still further.

The financial services industry is in the midst of a digital-driven revolution.

Changing consumer habits and rapid technological advances have forced traditional banks to invest in digital solutions, while tech firms and innovative new players are increasingly entering the market.

Indeed, the financial technology (fintech) sector is experiencing unprecedented interest worldwide, a trend that’s been accelerated by the Covid-19 pandemic as customers have turned towards cashless payments and found new online routes to manage their money.

London Partner Guy Potel explains: “We’re seeing an increasing trend in financial institutions investing in or partnering with tech companies because their own legacy banking systems and in-house teams lack the skills and technology to enhance their own offerings to consumers and businesses.

“At the same time, fintech companies such as PayPal, Klarna, Adyen and Revolut are going head to head with the big banks and securing full bank licenses, meaning they’re able to offer a wider range of regulated services and products.

“In an already competitive market, some of the largest technology companies in the world are also showing their intentions to enter the fintech market, including Uber, Apple and Facebook/WhatsApp.”

It’s against this backdrop that the Firm has established its Fintech Interest Group, which has been set up to provide added focus in this fast-growing sector.

Guy, who is leading the new group, explains: “Many of us have been advising fintechs for several years, but the FinTech Interest Group will add an extra level of focus and formality that will help us maximize the opportunities available and best help our clients with their fintech related legal requirements.”

The Fintech Interest Group comprises a wide variety of partners across the Firm in almost all of our jurisdictions. They meet regularly to share market insight and know-how and to improve cross-border collaboration.

The group also collaborates closely with the Global Financial Institutions Industry Group and the Global Technology Industry Group as well as the Financial Services Regulatory and Technology Transactions practices.

Guy says: “We’ve already worked on many high-profile matters in the sector but, by sharing knowledge and opportunities, we hope to secure more roles on major deals, raise our profile and ultimately make fintech a more material financial contributor to the Firm’s profits.”

The past year saw White & Case named Fintech Practice of the Year 2020 by Law 360, recognition of our strong reputation in the sector.

Recent highlights have included advising Klarna, a point of sale financing company, on its $650 million financing at a valuation of almost $11 billion.

The Firm also worked with Jack Dorsey’s financial payments company Square on legal issues surrounding the creation of the Cryptocurrency Open Patent Alliance, a non-profit organization aimed at stopping firms abusing the patent process in relation to cryptocurrencies.

Another high-profile client is corporate investment banking company Natixis, which the Firm advised on a digital transformation project, including the acquisition of cloud services, covering more than 35 countries.

We also advised Facebook on its $5.7 billion investment in Indian tech firm Jio in relation to its WhatsApp Pay service.

New York Partner Adam Chernichaw explains: “2020 has seen a surge in the fintech sector because the pandemic has accelerated the growth of the cashless economy.

“That’s seen fintech move from being a niche area of financial services to the mainstream.”

More than $53 billion was invested in fintech start-ups worldwide in 2019, with the 66 largest players worth a combined $248 billion.

Guy says: “This is clearly a sector with a bright future and the Firm is brilliantly positioned to help our clients with their fintech needs.

“We’re fortunate to have real strength in all related areas – financial institutions, tech, compliance, regulation, capital investments and mergers and acquisitions, across multiple jurisdictions. The Law 360 award and our recent projects in the sector are testament to that.

“We’re extremely well positioned and the interest group has been set up to help the wider team best exploit the opportunities in this area, knowing they have the support of a coordinated global team.

“With the help of a united effort across the Firm, I’m really excited about what we can achieve in this fast-growing and dynamic sector.”

If you’d like to know more about the team, need support or would like to discuss fintech opportunities, contact any member of the team or your local Business Services representative. You can also search fintech on the Connect home page.