Fintech

Fintech companies continue to expand access to financial systems and power the digital economy. Marsh’s fintech team combines expertise in technology and financial services industry risk to help you be innovative and successful.

With forecasted compounded annual growth rates of nearly 25% through 2025, fintech is one of the fastest growing industries in the United States. The appetite for seamless financial transactions combined with increased safety and security has only accelerated during the COVID-19 pandemic. Online investment management, digital insurance transactions, and digital financial literacy are also increasing along with access to technology.  

Fintech unites technology with financial systems and services, bringing with them complex risks from both industries. Fintechs must navigate the regulatory environment of financial services firms, while also ensuring their technology systems are secure and available across a variety of platforms. 

We bring together our Financial Institutions and Technology Practices to help your company understand fintech risks throughout your growth journey. We help identify the coverages you need to meet regulatory and funding requirements, attract board members and investors, protect your balance sheets, and mitigate your risks. 

FAQs

While technology can reduce the frequency of various risks, it can also exacerbate severity as fintech companies rely more on technology and data to deliver products and services previously provided by traditional financial services firms. As they merge financial and technology opportunities, fintech companies also face new risks, including:

  • IT security, privacy, and cyber risk
  • Regulatory and compliance risk
  • Consumer class-action
  • Professional services risk
  • Intellectual property risk
  • M&A risk
  • Risk of theft and fraud through electronic and non-electronic means
  • Employment practices liability, including allegations of third-party discrimination against customers or clients

Errors and omissions coverages for fintech companies are critical.  You should work with your broker to understand the types of E&O coverage appropriate for your firm. Depending how you go to market and what kinds of financial services you do or don’t provide, your regulatory, technology, and professional services risks may vary.

Other critical coverages for fintech companies include cyber insurance, which covers companies in the event of a data loss, ransomware attack, or other technology breach, and directors and officers (D&O) insurance, which provides coverage for board members in the event of a lawsuit due to their business decisions. 

Our people

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Ali Inan

US Fintech Industry Leader, Marsh