'Innovation in legal services is finally accelerating’'
When Karola Xenia Kassai launched KassaiLaw in Budapest in 2012 she set about helping an enterpreneurial new breed of law firms that were digital by default.
Despite the challenges posed by the Covid-19 pandemic, her company is continuing to grow and she has just incorporated a second HQ in Stockholm. The Swedish capital was an obvious choice for Karola due to its innovation leadership-status in Europe, entrepreneur-friendly environment, gender equality, and her great memories from previous visits.
The innovative nature of many new digital projects forces companies to navigate a set of complex, often contradictory and incomplete regulatory frameworks with hardly any established practices available. For the 380+ FinTech companies in Sweden, many of which have very small fraud and compliance teams, dealing with an ever-changing legal background is daunting to say the least.
This is where the enterprising lawyers at KassaiLaw step in. What’s more, the EU-wide harmonisation of regulations for financial services means the company can apply an innovative approach that is not wedded to a single territory.
Fintech companies need strong partners that truly understand the project dynamics and can work in an agile, customer-focused and solution-oriented way. KassaiLaw’s mission is to support FinTech companies on this road.
Karola’s experience shows that law firms need to make an effort to truly comprehend the reality of their clients. The lawyers at KassaiLaw took programming courses, volunteered during Sthlm FinTech Week and have been mentoring FinTech startups in order to get an understanding of the practical challenges on the frontlines.
Providing clear answers to what FinTechs can and can't do might be difficult, but KassaiLaw shows that it is possible and necessary.
“Someone has to answer these questions for innovation to thrive”, says Karola.
Besides the need for a changed mindset, Karola also believes that her industry must embrace LegalTech, for example by using artificial intelligence to manage a complex web of regulations. She notes however that many legal challenges in FinTech cannot yet be addressed through LegalTech solutions as their complexity often requires legal experts to read between the lines, balance national and European regulations, and provide case-by-case customized analyses.
KassaiLaw is in the right place to get the best out of LegalTech, a sector that has been on the rise across the Nordics for a few years. As an example of this, in early 2020 the Stockholm-based law firm Synch launched Synch Sandbox, a LegalTech incubator and accelerator to help the sector grow.
This growth will eventually lead to lower costs and time spent on traditionally manual legal tasks. Artificial intelligence could help analyze and screen thousands of pages of legal documents within minutes, not hours and days. A strong legal ecosystem in Sweden will have a positive effect on the regional fintech sector as well, making it more efficient and easier to prosper.
This story is featured in the new Stockholm FinTech Guide, which you can download here (PDF).
For more information, please contact Jenny Berthling. Details below.