London-based fintech company Shieldpay has announced it has reached a milestone of 44 law firms utilising Shieldpay. The service offers services to law firm aimed at improving efficiencies and delivering secure payments to help rid the industry of fraud.
Handling client funds
White & Case and Cooley are just two of 44 law firms using Shieldpay’s secure payment services, which range from traditional Corporate Escrow transactions to firms leveraging Shieldpay’s Third Party Managed Account (TPMA) solution. Firms using the TPMA solution have completed a diverse range of transactions; from complex commercial and corporate deals and property transactions to simple fees on account, personal injury claims management and litigation funding. The company notes that the new Solicitors Regulation Authority (SRA) rules coming into force on 25 November 2019 explicitly references TPMAs as a suitable alternative to firms holding client money themselves. Further similar changes are also expected from the Council for Licensed Conveyancers (CLC) in the coming year. Geoff Dunnett, director of Shieldpay Professional Services, said “As the industry starts to embrace digital change, processes like handling client money will be streamlined and there will be numerous benefits. Speed, security and transparency are set to increase as the adoption of Shieldpay and our Third Party Managed Account solution grows.” Cooley UK commented, “We have been working with Shieldpay on numerous transactions and we have found its digital solution to providing corporate escrow and payment services a great fast paced solution in this area bringing efficiency, transparency and certainty to one of the most critical parts of any transaction - the status of funds at any given moment.”
Mr Dunnett added,“Working with 44 law firms, including White & Case and Cooley, is an incredible milestone and we’re excited to break new ground. We are committed to continuing to innovate, by improving efficiency and security in the legal profession.” The benefits to law firms says Shieldpay in using the TPMA solution are numerous: Shieldpay is fully authorised and regulated by the FCA, provides an additional layer of security to transactions, increases transparency to all parties, lowers the threat from cyber criminals and phishing scams, and removes certain costs, risks and regulatory obligations associated with holding client money. The fintech company says the milestone establishes Shieldpay as the “payment provider of choice” for high value transactions. The technology offers lawyers an alternative to managing client money in house, cutting payment risk and administration cost while benefiting the firm, financial institutions and importantly, consumers.