Fintech
LawtechUK’s Major Project Shows How ‘Smarter’ Contracts Are Here to Bring Benefits to Businesses Worldwide
The ‘Smarter Contracts’ project has been launched by LawtechUK to encourage greater understanding and use of ‘smarter’ contracts by businesses globally.
Smarter contracts are legally-binding digital contracts that use technology to provide benefits over conventional contracts. They range from simple applications like electronic signatures all the way through to sophisticated ‘self-executing’ contracts. Smarter contracts are changing the way people live and work for the better and, as businesses across sectors realise that technology is available to improve and evolve contracts, the use of smarter contracts will increasingly become the norm. LawtechUK’s explainer video is below:
https://youtu.be/LkUsI0RFPeg
Billions of contracts are entered into each year, with 26% of people regularly handling contracts in their everyday work. Digital contracts offer significant benefits, including increased efficiency and productivity, greater trust and transparency, and reduced risks of fraud. Paper-based and manual ways of contracting result in businesses missing out on 9% of revenue each year. Moving from paper to digital trade documents is anticipated to free up an estimated £224 billion in efficiency savings and generate £25 billion in global economic growth by 2024.
The project includes a Smarter Contracts Report and a new Smarter Contracts & Digital Assets Hub with a range of additional guidance, insights, courses and resources, intended to provide a central space to learn more.
LawtechUK and its UK Jurisdiction Taskforce (UKJT) worked with collaborators across sectors, professions and countries to produce the Smarter Contracts Report. The examples included in the Report demonstrate why smarter contracting adds value to business practices and show how widely the technology is already being used across commercial, financial and consumer sectors. They include:
- The use of digital documents and blockchain technology in supply chains reducing friction in global trade and transforming logistics operations
- Self-executing contracts being central to renewable energy microgrids, with the automatic recording of transactions and immediate payments for small amounts of energy significantly increasing efficiency and enabling the transition to clean energy
- Smarter contracts and blockchain technology being used to expedite the sale, purchase and registration of homes
- Smarter parametric insurance contracts allowing for immediate payments to be made as soon as the relevant data is recorded – for example, when flights are delayed or storm damage occurs
- Smart legal contracts and non-fungible tokens being securely linked to the ownership of physical assets, revolutionising the way assets are traded with economic and environmental advantages
In the UK, work by the Law Commission and LawtechUK’s UKJT has provided a strong legal foundation for the mainstream use of smarter contracts, including through the Legal Statement on Cryptoassets and Smart Contracts, the Law Commission’s advice on smart legal contracts and electronic trade documents, and the Digital Dispute Resolution Rules.
Emma Dearnaley, LawtechUK: “Contracts are a vital part of business activity across all sectors. Yet many still approach contracts in much the same way as we have for centuries, creating and managing them in paper form. Technology makes this unnecessary now. Contracts and the valuable data they contain can be digitised, offering a wide range of benefits and the opportunity to reimagine contracts as live sources of intelligence that add value to business all the time. At LawtechUK we wanted to build on the legal and technical work already done by shining a light on practical ‘smarter contract’ solutions to real-world problems, to spark ideas and inspire confidence in the further use of these new technologies.”
Sir Geoffrey Vos, Master of the Rolls and Chair of LawtechUK’s UK Jurisdiction Taskforce: “The Smarter Contracts report explains how smarter contracts and blockchain technology are currently being used. The theory is to dispel the myth that blockchain is a fringe technology used only by those wanting to risk their livelihoods or possibly make their fortunes on volatile cryptoassets like Bitcoin. The blockchain is now at a stage in its development equivalent to where the internet was in or around 1995. The internet was unstoppable in 1995 and blockchain technology is unstoppable now. It will become ubiquitous in all major industrial and financial sectors, simply because it allows for the immutable recording of data, thereby reducing friction in commercial and consumer transactions and obliterating the scope for dispute as to what has occurred. This technology is not something that might happen in years to come; it is happening now. Our report collates some of the most accessible examples.”
Professor Sarah Green, Law Commissioner for Commercial and Common Law at Law Commision of England and Wales: “Digital and smarter ways of contracting could revolutionise the way we do business, particularly by increasing efficiency and transparency. The Law Commission has concluded that electronic signatures can be used to execute documents and that the existing law of England and Wales is clearly able to facilitate and support the use of smart legal contracts. This confirms that the jurisdiction of England and Wales provides an ideal platform for the use of a wide range of ‘smarter contracts’ in practice. The Law Commission’s related work on electronic trade documents, digital assets and conflict of laws will further support the use of smarter contracts. The Smarter Contracts report published by LawtechUK is a helpful practical contribution to show the market how technology is already revolutionising contracts.”
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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