LawtechUK’s report identifies the barriers to entry and untapped opportunities that can kickstart industry wide change. It points out that although the UK lawtech sector grows from strength to strength, legal services can be unaffordable and inaccessible for many consumers and SMEs. Further, by focusing on JusticeTech, it says that a thriving ecosystem can be created with the aim of empowering individuals and businesses alike to access the legal support they need at a price they can afford.
The report takes the point of view of an entrepreneur to better understand the complex and fragmented ecosystem of legal services. It highlights the challenges and identifies new opportunities to build successful JusticeTech solutions. Additionally, it outlines how the JusticeTech sector can be better supported for scale for the benefit of society and the economy.
The key findings of the report are:
- The JusticeTech marketplace may be in its infancy, but it is already providing opportunities for entrepreneurs to develop and launch their solutions successfully.
- Consumers and SMEs often do not recognise that their problem is a legal problem. Lack of awareness of legal needs can pose a significant hurdle to JusticeTech entrepreneurs who want to transform legal services and make them more accessible to consumers.
- When consumers and SMEs do recognise that their problem is a legal problem, their journey through the justice system is complex and lengthy. There is a need to simplify the process and deploy clearer signposting to increase the visibility of JusticeTech, therefore enabling better access to the legal services.
- Securing investment from a wider range of funding sources, such as impact investors, can allow JusticeTech entrepreneurs to avoid the trade-off between the needs of justice-affected communities and the desire of traditional venture capital investors.
- Access to reliable data, through collaboration and cooperation between industry stakeholders is critical to building strong and scalable JusticeTech solutions, which have been validated with data.
- The government and regulators have an important role to play. Support and guidance for entrepreneurs showing not only where regulation applies, but also how to expedite existing processes, will support growth and instil the trust in consumers and traditional firms needed to encourage adoption of verified JusticeTech solutions.
- Providing specialist support, through venture builders and testing environments, will support ‘justice-by-design’ solutions in a safe place. They may also help to upskill and support entrepreneurs who are often from justice-affected communities and are less familiar with the justice system.
