Data security, intellectual property (IP), artificial intelligence, and issues stemming from the outsourcing of some of the development work are some of the key issues to think about when considering an investment in a fintech company. Hong Kong Intellectual Property partner Gabriela Kennedy and Counsel Karen Lee addressed these topics and more in a seminar for a property developer at its Hong Kong Island office on 10 June, 2020. The developer’s staff from various departments attended, either in person or by video link. IP officer Samantha Cheung also joined the seminar.
Gabriela outlined some of the pros and cons of fintech solutions and discussed the roles that data security and intellectual property play in fintech. Karen looked at the key questions potential investors in fintech companies should ask during the due diligence process and outlined the major issues they should consider if the development of fintech solutions are outsourced. Karen then emphasised the other key issues potential investors should pay attention to in the due diligence process, such as the type (registered or unregistered) of IP rights involved and who owns them, regulation, confidentiality and security breaches. Many of the same issues, Karen added, are also relevant when looking at the outsourcing of fintech development, such as confidentiality, security and IP rights. Others include service levels, testing, disaster recovery and business continuity and audits and examinations.