FinTech Report 2024

Is the regulatory tsunami we now see within the FinTech sector sustainable? 

In the past, FinTech lawyers primarily focused on negotiating deals and drafting complex contracts in the emerging technology sector now known as FinTech. However, over the last decade, there has been a noticeable shift in focus. Increasingly, more time is now being spent providing guidance and navigating the often intricate surrounding regulatory landscape. Regulatory questions and issues frequently become significant obstacles or deal breakers if not properly addressed and resolved. Additionally, many of the regulatory framework and legislation currently in place is relatively new, meaning that the sector has not yet had the opportunity to establish standard practices or common interpretations of these rules. This often results in time-consuming and costly processes.

The question we must ask ourselves is whether the regulatory burden on the FinTech sector and its innovative entrepreneurs is sustainable or overly burdensome. In my opinion, it is too early to definitively answer this question. However, we have learned that with sensible regulation, implementation, and interpretation, sustainability can be achieved over time. Currently, the delicate balance between fostering innovation, ensuring effective oversight, protecting customers, maintaining market stability, AND leveraging digital innovation opportunities is indeed a terror balance. We may therefore be in a situation where over-regulation or inadequate implementation and interpretation of rules hinder transparency for all stakeholders. We should anticipate further regulations, guidance and case law that could either boost or limit the FinTech market in the near future.

As a consequence of these observations, we have chosen to highlight some hot topic regulatory issues and trends in this year’s FinTech Report 2024. Our aim is to provide guidance within the regulatory field based upon our daily work experiences with the FinTech industry.

Without further delay, it is our pleasure to present to you Setterwalls’ FinTech Report 2024. We hope you find it to be both insightful and enjoyable.

• What About the Little Guy – the SME’s Practical Guide to DORA
• Liability, Opportunity and Risk: use of Generative AI in the Finance Industry
• Sweden’s new consumer credit proposals – will red tape get consumers back into the black?
• The Swedish Dilemma: Balancing Data Protection and Background Checks in the Financial Sector
• Drawing the line – Managing the overlap between the different cyber security regulations
• Scraping the Surface of Web Scraping – What Fintech Companies Should Consider When Harvesting the Web

Yours sincerely,

Joacim Johannesson
Partner, and Head of Setterwalls’ FinTech team