Contracting with fintechs
Contracting with fintechs

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Contracting with fintechs
  • What is fintech?
  • Why do financial institutions need to work with fintechs?
  • How do financial institutions normally contract with third parties?
  • Other ways to partner with fintech
  • Legal issues when contracting with fintechs
  • Agile method
  • How to engage with fintechs

This Practice Note is aimed primarily at established financial institutions and early stage fintechs wanting to partner in respect of fintech solutions. It covers:

  1. What is fintech?

  2. Why do financial institutions need to work with fintechs?

  3. How do financial institutions normally contract with third parties?

  4. Legal issues when contracting with fintechs

  5. How to engage with fintechs

The term ‘financial institution’ in this note is used to refer to an organisation that is in the business of dealing with regulated financial products and services. Typically, they will include banks and insurers but may also include asset managers and others involved in the financial services sector.

This note is intended only to provide a general overview of the key issues and should not be used as an exhaustive or all-encompassing resource on the legal issues. For example, many of the legal considerations which arise during any supplier engagement will also arise when contracting with fintechs.

It should be noted that the contracting process will vary greatly from institution to institution. Much will depend on the financial institution’s risk appetite, market focus, business strategy (including how quickly it wants to get a solution to market) and jurisdiction.

In addition, much depends on the specific fintech business involved and the type of engagement model chosen. Parties can choose different levels of integration and partnership, from deep collaboration creating shared