Technology and intangibles: TP considerations for fintech sector

Technology has pervaded the financial sector and caused disruption to established business models arguably more than any other industry over the last decade. Fintechs exist in many pockets of the industry, from digital banks, platform lenders, buy-now-pay-later providers, high frequency traders, and crypto brokers, illustrating how technology continues to shape the evolution of the industry, particularly in high growth markets such as Asia Pacific.

Many of the TP issues for fintechs centre on (potentially hard to value) intangible assets, such as compensation for the right to use Intellectual Property (IP), valuations of intangibles at sale, and the location of Development, Enhancement, Maintenance, Protection and Exploitation (DEMPE) activities, particularly in a technology-enabled work environment.

Centralised business models with single or hub-based entrepreneurs are common, and necessitate a robust TP analysis regarding the value of contributions and control over risks.

Read more with Deloitte specialists Avik Bose, Vrushang Sheth and Kristin Phang exploring the TP implications facing fintech and best practices for sustainable TP models in a fast-moving market sector over here.