Banking litigation in the next decade: a look ahead – fintech implications
At the start of a new decade and a period of heighted uncertainty in the Covid 19-era, it seems a good time to take stock of the likely sources of litigation risk for financial institutions.
Change and uncertainty have always fuelled litigation. Altered conditions can show agreed contractual terms as not being up to their intended task; commercial bargains which have not performed as hoped lead to attempts by disappointed parties to extricate themselves; factors affecting wider business performance impact on parties’ appetite for – or indeed need for – litigation.
Our dispute resolution team has published a forward looking report, identifying four themes illustrating what we are seeing as actual, threatened and potential litigation:
Despite differing systems of dispute resolution across the globe, these themes show a marked degree of consistency. Our fintech team contributed to the section on New technologies in financial services which focuses on litigation trends in the UK, US, Germany and Singapore.
New technologies in financial services
Inevitably, when new technology is introduced to the financial sector, users grapple with a myriad of risks including:
- complying with data protection legislation
- ensuring anti-money laundering rules are followed
- trying to ensure new technology’s resilience to shocks and cyber-attacks
- considering how it fits within the financial services regulatory framework as well as traditional legal frameworks.
The report considers litigation trends for cryptoassets and smart contracts in respect of which fundamental questions and ground-breaking cases are currently being considered. As courts grapple with the novel challenges presented by fintech, many jurisdictions will want to position themselves as the first choice for resolving fintech disputes.
Download the full report from our webpage: Banking litigation in the next decade: a look ahead.