Fintechs Increase Recruitment of Legal Experts in Response to Tougher Regulations

• ByStartupStory     |    April 18, 2023

Amidst global challenges, a funding winter, and job cuts in India’s startup industry, more financial technology companies are enhancing their in-house legal teams to cope with tougher operating conditions resulting from tightening regulations. According to industry experts and leading executive search firms, fintech startups are seeking to recruit seasoned legal and compliance professionals. Native, an executive search firm, reported that fintechs accounted for 25% of the 200+ senior legal and compliance movements in the financial services sector in the past year.

Recent senior legal and compliance appointments in India’s fintech sector include Aravind Venugopal, formerly of Khaitan & Co, who joined Acko as its first General Counsel. Rohan Bhandari, formerly of Paytm, became CoinDcx’s head of compliance, while Shiva Kumar Tadikonda, previously of DBS Bank, became VP compliance at CoinSwitch Kuber. Gaurav Dugar, formerly of Shardul Amarchand, became general counsel at CredAble. Tushar Tarun, former head of legal for fintech & payments at Tata Digital, joined Cashfree Payments as head of legal and compliance. Other notable moves include Anubir Singh, who joined Paytm Payments Services from Pine Labs, and Baljit Singh Kalha, who left Titus & Co to become Stashfin’s group general counsel.

According to Vinal Vikamshi, director of corporate functions at Native, fintech companies in lending, payments, investments, trading, and insurance are actively seeking seasoned legal and compliance professionals to navigate the complex and evolving regulatory landscape. Preference is given to candidates with diverse exposure and fungibility across legal intricacies, particularly those with experience in law firms.

Vinal Vikamshi stated that the momentum around public policy, litigation, regulatory affairs, and ESG (environmental, social, and governance standards) is driving the need to hire senior legal resources. Industry experts noted that the Indian government’s heightened attention on digital payments and the Reserve Bank of India’s newly introduced guidelines on digital lending are some of the reasons why many fintech startups are expanding their legal teams.

Nilasha Mukherjee, managing consultant at Vahura, a search and advisory firm, stated that fintech startups are aiming to decrease their reliance on external counsels and rely more on in-house legal professionals to manage the ongoing regulatory burden. She added that there is an increasing need for litigators with expertise in criminal law, and in-house legal counsel is crucial for the development of innovative products.

Neha Sharma, the founder and CEO of Avimukta, a legal search and consulting firm, highlighted that the daily launch of numerous heavily regulated fintech products has led to a tightening of rules and regulations. She added that there is a growing demand for lawyers with experience and expertise in data privacy guidelines who are also tech-savvy. Due to the specialized nature of fintech, Sharma noted that there are few professionals who specialize in this area, apart from those with backgrounds in banking and finance law.

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