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Seizing Opportunities in the U.S. Fintech Market: Shearman & Sterling’s Guide to Successful Scaling

By Shearman & Sterling

By leveraging technological advancements, the FinTech sector has created new efficiencies within global financial markets and democratised access to financial services at both the local and cross-border level.  However, these developments have also exposed FinTechs to overlapping and, at times, overwhelming regulatory frameworks and legal implications. 

Innovation often precedes regulation and with the rapid growth of the FinTech sector, regulators around the world have been working to keep pace with these advancements. In the last ten years, we have seen global regulators provide guidance on the application of their regulatory frameworks to these new technologies and the introduction of legislation and government programs meant to address these developments. But the fragmented regulatory market is hard to navigate in such a global interconnected FinTech ecosystem – especially in the U.S. which operates under a myriad of state and federal laws, as well as regulation agencies at both levels, that companies must contend with. 

Global FinTech firms considering scaling to the U.S. market can certainly benefit from expanding to the country, including access to the world’s deepest talent pools, new avenues for growth and significant business opportunities. The U.S. in particular is known for its developed, liquid capital markets that create opportunities for fundraising, acquisitions and asset sales. However, international firms must have an understanding of the country’s regulatory and compliance requirements and keep them top of mind in order to avoid roadblocks and successfully expand.

To that end, Shearman & Sterling has created Entering the U.S. Market: A Guide for Fintech Firms, in conjunction with the UK Department of International Trade and Her Majesty’s Treasury. The Guide aims to demystify the issues, regulations and resources that FinTechs from the U.K. and around the world need to know before launching or expanding into the U.S. Covering topics ranging from formation, fundraising, employment, immigration and tax law, to intellectual property protections and data privacy, the Guide aims to empower FinTechs to take full advantage of these opportunities and avoid potential pitfalls along the way.

Shearman & Sterling, through our FinTech Foundry program, is dedicated to helping the FinTech-related activities of the wider global FinTech ecosystem, from FinTech startups, accelerators and incubators, to venture capital and private equity investors and policymakers. 

The firm’s attorneys, including Barney Reynolds, Simon Dodds, Pawel Szaja, Reena Sahni, and Alan Bickerstaff, are participating in various sessions during UK FinTech Week relating to global FinTech regulation, the impact of COVID-19 on FinTech and considerations that FinTechs should make when entering the U.S. market. To learn more about our FinTech Foundry program and how we are supporting the Innovate Finance community with virtual office hours following UKFW please contact ShearmanFintech@Shearman.com

Follow us on Twitter @ShearmanFinTech for the latest updates.