Fintechs
Legal structuring of digital credit models and financial services according to the activity carried out.
Fintech describes a business model and the use of technology, not a single category of authorization. A company may develop software, grant credit, intermediate transactions or provide payment services, each with different regulatory consequences. Among credit fintechs, the Direct Credit Company (SCD) and the Peer-to-Peer Lending Company (SEP) have their own structures and rules. The choice depends, among other aspects, on the origin of the funds and the position assumed before creditors and borrowers.
The legal work begins with the flow of the transaction, including contracting, disbursement, collection and remuneration of the participants. Based on this design, the authorization requirements, contracts with partners and risk controls and anti-money laundering measures are examined. Using a technology platform or engaging an authorized institution does not, by itself, resolve the classification of the activities carried out by the company. The documentation must reflect the actual role of each party involved.
Our work
- Classification of SCD, SEP and other digital models
- Contractual structuring of credit and partnerships
- Legal preparation for authorization and operation
Does every fintech need Central Bank authorization?
The criterion is the activity actually carried out. Merely providing technology is different from carrying out regulated credit, payment or intermediation activities.
Editorial review: