with a view to “establishing a technology-based nearshoring centre 65 ”. The Thomas Commission also noted that “greater focus is needed in law schools on legal tech, which is crucial for the success of the legal profession in Wales” and recommended that legal technology should be taught in law schools. 66 The composition of the legal sector in Wales explains some of the challenges encountered in adopting technology. A report by the University of Oxford for the SRA noted that the top three barriers to adopting new technologies reported by legal professionals are a lack of financial capital, lack of staff with appropriate expertise and regulatory uncertainty. 67 For smaller firms, the element of risk involved would be greater than that for larger firms, and cost and expertise barriers are self-evident in such context. 68 Consumer appetite may also be reduced in rural parts of Wales, thus deterring investment from law firms: Welsh Government warned, for example, of the dangers of increasingly utilising technology and digitalising services, which could potentially restrict access to justice by excluding the 7% of the population that do not use the internet. 69 Lessons from the experience of FinTech suggest that Wales represents, in any case, fertile ground for the transformation of traditional services sector into technology-driven, dynamic ones. Indeed, FinTech is an area of innovation in technology which has seen successful in Wales and is aspirational to what the LegalTech industry could similarly achieve. After the compound semi-conductor industry, FinTech is the largest start-up area in Wales. Notable start-ups based in Wales in this area include Yoello, a mobile payment app; Coincover, which protects digital assets; and Delio, which connects potential investors with opportunities. Wales is home to around 128 FinTech companies, which contributed £3.6bn to the Welsh economy in 2021. 70 There are an estimated 55,000 people employed within the financial services sector in Wales, around 16,000 of those in the Fintech sector. 71 An estimated 22,000 students study FinTech- related subjects in Wales. 72 The sector is supported by FinTech Wales, a non-profit association whose purpose is to bring together people across the sector to share ideas, support, training and build a community. Relevant support is also provided by Business Wales, Technology Connected, and Blockchain Connected.
65 Ibid 407 66 Ibid 13
67 M. Sako and R. Parnham, Technology and Innovation in Legal Services: Final Report for the Solicitors Regulation Authority (University of Oxford, 2021), available at www.sra.org.uk/globalassets/documents/sra/research/chapter-2---technology-and- innovation-in-legal-services.pdf?version=4a1bfe, at 31. 68 Ibid, 30. 69 Welsh Government Delivering Justice for Wales (May 2022), available at www.gov.wales/sites/default/files/publications/2022- 06/delivering-justice-for-wales-may-2022-v2.pdf. 70 FinTech Wales, 2021/2022 FinTech in Wales (2022), available at https://fintechwales.org/wp- content/uploads/2022/11/FinTech-Wales-Annual-Report-2022.pdf, at 11. 71 Ibid, 25. 72 Trade and Invest Wales, Together Stronger: The Rise of Welsh FinTech (25 January 2023), available at https://tradeandinvest.wales/inside-story/together-stronger-rise-welsh-fintech.
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