Why lawtech is so much behind fintech?
Mikhail Ivanenko
10 replies
I was thinking the other day that technology penetration in the legal domain is very underdeveloped compared to what you have in finances. Although both industries are perceived as conservative, regulated, and full of people who are not very nice))) How do you think, why is that?
Replies
Fabian Maume@fabian_maume
One factor could be the higher need for localization. You can operate a fintech product in the whole Europe Union with only one banking license. But when it comes to the law you will see much more differences between European countries.
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@fabian_maume Thanks Fabian indeed that may be the case. Although license is not needed to any legal practice and in any country, there are way more cases where it is needed. And also legislation differs. So, probably some universal approach is needed
There are a few where services have been productionized. But I think the main reason is that it's less transactional than Fintech.
@maxwellcdavis thats a sound point , Maxwell. Thank you. I noticed also that there are way more solutions in a B2B sphere compared to B2C
@maxwellcdavis i was thinking about that as well. Don't you think it is way closer to fintech though?
@mikhail_ivanenko You might want to look at insurtech as that's sort of in-between
I was thinking the other day that technology penetration in the legal domain is very underdeveloped compared to what you have in finances.
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@nora_davis sory, i dont get this. coul d you please elaborate more?
I imagine this is because many people don’t need law help very often, but when they do there are large consequences and it is worth paying for an expert.
Fintech is the opposite, people use money many times a day and rarely would any issues with the transaction pose large consequences.
Also, accounting is pretty well suited to be done with computers. Law has a lot of interpretation, meaning people need to be involved every step of the way.
@daniel_illenberger that is agreat point, Daniel. Thank you! Indeed, people do not need legal help often and I also think they tend to not give to much attentiona to legal stuff like something which doe not concern them. And also because consequences are not apparent and delayed in time. I know a lot of companies who do not check their contract with lawyers because they do not see the point. Sometimes though it turns out it would have been 50x times cheper to do that, though its another story))