Financial technology (fintech) is one of the most popular trends in the business world today but the same cannot be said for legal technology.
The fintech sector has benefited from the support of the regulators. Last October, Bank Negara released its Financial Technology Regulatory Sandbox Framework, which enables the experimentation of fintech solutions in a live environment before they are rolled out to the market.
The Securities Commission Malaysia has also done much to facilitate fintech in recent years by releasing guidelines and taking a proactive role to encourage the industry.
In contrast, there has been little development in the budding legal tech field thus far. Similar regulatory support could serve to encourage innovation in the legal profession as many law firms still rely on manual practices.
CanLaw Asia Sdn Bhd CEO Loo Soon Yi believes a clearly defined, engagement-based framework – similar to the fintech sector’s – would help move the legal industry and its tech businesses forward.