{"id":719,"date":"2021-06-15T11:01:55","date_gmt":"2021-06-15T11:01:55","guid":{"rendered":"https:\/\/lawsikho.com\/blog\/?p=719"},"modified":"2022-04-02T16:25:46","modified_gmt":"2022-04-02T16:25:46","slug":"7-fintech-sectors-need-lawyers","status":"publish","type":"post","link":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/7-fintech-sectors-need-lawyers\/","title":{"rendered":"7 FinTech sectors need lawyers!"},"content":{"rendered":"\n

FinTech is a growing sector within the technology industry worldwide.India, China, Russia, South Africa, Ireland, the UK, Netherlands, Australia, Mexico Brazil, Peru and Columbia lead the world in terms of FinTech absorption.  <\/p>\n\n\n\n

Data s<\/a>ourced from Capgemini<\/a> reveals that by 2022 the non-cash-payments sector will be a US$ 400 billion market in Asia-Pacific itself and will become an almost 1 trillion dollar industry worldwide! <\/p>\n\n\n\n

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FinTech Adoption Leaders of the World as of 2020, Source: Visual Capitalist<\/a><\/figcaption><\/figure><\/div>\n\n\n\n
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Source: Capgemini, accessed from Finances Online<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

India has emerged as a global giant in FinTech. India has more than 200 FinTech startups. 87% of global FinTech-absorption happens in India. FinTech is closely related to InsurTech<\/p>\n\n\n\n

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India emerges as a global FinTech leader! (Source: IAMAI FinTech Report, 2020<\/a>)<\/figcaption><\/figure><\/div>\n\n\n\n

Together, FinTech and InsurTech companies are opening up job opportunities for lawyers, accountants and law students. There are primarily 7 types of FinTech and InsurTech companies emerging in India as cutting-edge tech-startups of today!   <\/p>\n\n\n\n

These are: <\/p>\n\n\n\n

  1. Digital Payment Platforms like Razorpay, Billdesk, etc.<\/li>
  2. Payment wallets and payment protection insurance (PPI) like PayTM, GooglePay, PayZapp, etc.<\/li>
  3. Lending platforms Lendingkart, Faircent, Rupeek, etc.<\/li>
  4. InsurTech Platforms like Policybazaar, Acko, etc.<\/li>
  5. InvesTech like Zerodha, Groww etc <\/li>
  6. Factoring and discounting of? like KredX, Modify, etc.<\/li>
  7. Forex and Crypto: Cashaa, UNICAs<\/li><\/ol>\n\n\n\n
    \"\"<\/a><\/figure>\n\n\n\n

    AI-platforms like Mantra Labs and SaaS-platforms like Artivatic are cutting corners of FinTech and InsurTech in India today!<\/p>\n\n\n\n

    With a vast amount of money flowing online, India has awakened to a new dawn of FinTech and InsurTech regulations in this new century! <\/p>\n\n\n\n

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    City-wise break-up of FinTech startups in India (Top 10 cities) as on October 2020, Source: FinTech Singapore<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

    Regulatory authorities like Reserve Bank of India (RBI), Insurance Regulatory Development Authority of India (IRDAI) and Securities and Exchange Board of India (SEBI) have brought laws and regulations in place to govern FinTech and InsurTech. Recently, the International Financial Services Centres Authority (IFSCA) has been established in GIFT City, Gandhinagar.  <\/p>\n\n\n\n

    Regulatory framework<\/strong><\/h2>\n\n\n\n

    The regulatory framework of FinTech and InsurTech in India is made up of various laws and regulations such as:<\/p>\n\n\n\n

    1. Payment and Settlement Systems Act, 2007 <\/li>
    2. Factoring Regulation Act 2011<\/li>
    3. SEBI (Portfolio Managers) Regulations, 2020<\/li>
    4. RBI NBFC – P2P Lending Platform Directions, 2017<\/li>
    5. RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways, 2020 <\/li><\/ol>\n\n\n\n

      and quite a few more! <\/p>\n\n\n\n

      The RBI, for instance, issues directives and guidelines on various aspects of FinTech such as Prepaid Payment Instruments, Electronic Payment Transactions and the latest 2020 Guidelines on Regulation of Payment Aggregators and Payment Gateways. <\/p>\n\n\n\n

      The SEBI and IRDA also issue regulations on FinTech and InsurTech from time to time. <\/p>\n\n\n\n

      SEBI, for instance, has its Credit Rating Agencies Regulations in place since 1999 and has also recently brought its Portfolio Managers Regulations of 2020. <\/p>\n\n\n\n

      IRDA, on the other hand, has an Insurance Web Aggregators Regulations in place since 2017 and has also subsequently brought the Regulatory Sandbox Regulations, 2019. <\/p>\n\n\n\n

      Opportunities for lawyers<\/strong><\/h2>\n\n\n\n