ADR in Fintech Agreements

The term Fintech is derived from the words 'Financial' and 'Technology.' Fintech Companies are simply companies that make use of modern technology to compete with traditional financial methods (such as banks, building societies, etc) in the delivery of financial services. When we speak of Fintech companies, we mean any Mobile Network Operator (MNO) that provides these services; They collaborate with banks to enable their customers transact between the two entities.?

On the face of it, this may appear simplistic but in order to collaborate, banks and Fintechs enter into commercial agreements allowing them to share technological information that borders on customers, clients, market opportunities, operations, processes, product information, designs and trade secrets, software and so forth. Due to the private nature of the information exchanged between the parties, it is imperative that Fintechs that wish to collaborate with banks or any traditional financial service provider, include a confidential dispute resolution clause such as an arbitration clause so as to ensure that the technological information shared between the parties, should a dispute arise, remains confidential and is only disclosed to a neutral third party, called an Arbitrator in a provide forum of Arbitration.?

Fintechs would do well to engage the services of an experienced lawyer to ensure that an effective Arbitration clause is embedded in a Fintech agreement.

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The author, Valerie Kawangu Chiyombwe is the Founder & Managing Partner of Valerie & Partners, she is a trained and passionate ADR Practitioner.