Fintech
What are the next frontiers for practice groups in law firms? – Part 1: Fintech
In recent years, the concept of interdisciplinary and industry-specific practice groups within law firms has gained significant traction. This shift reflects a major shift in the internal structure and business strategies of law firms in their quest to increase profits and improve economic efficiency. Financial technology, in particular, stands out as a transformative area. It has evolved from being spread across multiple practice areas to a dedicated field and single practice area in many firms. By reorganizing to better align with their clients’ needs and the changing market landscape, law firms are making financial technology a critical focus for future growth.
The Evolution of Fintech as a Practice Area
As fintech began to emerge as a distinct and rapidly growing vertical, lawyers representing fintech clients were often housed in multiple practice groups that did not fully capture the nature of their work or the full scope of legal issues within the industry. Lawyers across regulatory, finance, corporate, and litigation groups often found that meeting the needs of fintech clients required a multidisciplinary approach. In essence, the diversity of work produced by an entire vertical never fit neatly into one or even two specific practice areas. This categorization posed challenges for law firms because the interdisciplinary nature of fintech, like practice areas such as privacy/cybersecurity or, for example, life sciences, often meant that the work attorneys performed did not fit neatly into existing practice areas.