FinTech

Hunton Andrews Kurth LLP’s financial technology team knows the complexities facing the fintech market. In the fintech market, we represent start-ups and established fintech companies, banks, securitization sponsors, loan servicers, investors, vendors and financial institutions, bringing our corporate, business, financial, tax, privacy, data security and regulatory knowledge and experience together to assist our clients. 

Our clients include payment processing providers and fintech companies (including mobile payments and mobile wallet providers). In addition, we advise marketplace lenders, bank originators, debt and equity investors in marketplace lenders, and institutional investors. We also represent private equity firms, hedge funds and other purchasers of marketplace loans, software companies and other vendors to marketplace lenders, banks and other financial institutions in connection with lending, financing and purchasing activities with respect to marketplace loans. 

We regularly serve as “product counsel” regarding the development, design, regulatory advice and launch of fintech products and services, including payments products, online/mobile loan origination platforms, and online/mobile lending products. In advising fintechs on their business models and proposed products, we also conduct analysis regarding potential applicability of federal money services business registration requirements, state money transmission licensing requirements, and state lending licensing. 

In addition, Hunton Andrews Kurth works with several banks that serve as banking service providers and partners to non-bank fintech startups and companies, or “platform banks.” We provide review and advice regarding enterprise risk management related to such customer base, third-party vendor management policies and procedures (including specific policies and procedures to fintech customer vetting and due diligence provisions), analysis and advice regarding unique regulatory, compliance and examination issues, and model program agreements for fintech bank customers originating transactions on behalf of third parties.

We drafted the ICBA manual for banks to access and partner with fintech companies, served on the Federal Reserve Board’s Faster Payments Task Force, and serve as a member of the U.S. Faster Payments Council. 

Our team’s experience in the fintech industry allows us to provide effective and decisive guidance while delivering practical legal advice that is tailored to individual client goals. We have worked with our clients to:

• develop compliance management systems covering third-party risk, BSA/AML/KYC systems and IT/cybersecurity practices to meet regulatory requirements,
• advise on the EU General Data Protection Regulation, US privacy laws and global privacy regulatory frameworks,
• develop privacy compliance and global privacy governance programs, including preparing privacy policies, data processing agreements, data transfer mechanisms, internal governance policies, privacy impact assessments, privacy training programs, and counsel on day-to-day payment processing privacy issues,
• counsel on cybersecurity and data breach preparedness activities, including developing information security policies and procedures, incident response plans, tabletop exercises and breach notification toolkits,
• advise on data breach and cybersecurity incident response, including preparation of required notifications pursuant to state, federal and international breach notification laws, call center training and development of media strategies,
• advise on compliance with payment network rules and other payment industry standards, including the Payment Card Industry Data Security Standard (PCI DSS) and the Payment Application Data Security Standard (PA DSS),
• evaluate state and federal license requirements and obtain necessary state and federal licenses,
• structure programs to minimize and satisfy federal and state licensing and regulatory requirements, including bank licensing, broker-dealer matters, investment adviser compliance and investment company matters,
• structure loan sale programs that address certain US federal tax issues relevant to foreign investors,
• develop marketplace lending loan sale programs that comply with federal securities laws requirements,
• securitize marketplace loans,
• address interest rates and fees charged by marketplace lenders and bank originators,
• advise on fintech mergers and acquisitions, including conducting appropriate due diligence and negotiating deal terms,
• form and structure hedge funds that invest in fintech companies, including in loans originated by marketplace lenders,
• purchase, finance purchases of, or sell marketplace loans under flow purchase agreements and other arrangements,
• negotiate software licenses and cloud platform agreements,
• develop eContracting systems and IT sourcing,
• negotiate agreements for financial product marketing, core bank processing, debit card and ATM processing, remote deposit capture, and other fintech services,
• develop corporate policies and procedures,
• advise on all aspects of the use of blockchain and other distributed ledger technologies, including smart contracts and digital currency,
• advise on participation in mobile wallets and other emerging payment platform programs,
• design executive compensation arrangements and benefits programs, and
• evaluate and negotiate investment offers.