Global fintech company Revolut will drop the traditional law firm panel as AI advances make it easier to select advisers more suitable to each piece of legal work.
Tom Hambrett, chief legal officer with the British business, said it was time to move away from the default of in-house teams retaining a fixed-term panel.
The panel will be replaced with Revolut Partners, a performance-based system more tailored to the business and which measures performance against key metrics.
‘No one partner’s position in the starting lineup is guaranteed,’ said Hambrett. ‘Firms will be reviewed quarterly - and we’ll make changes when the model tells us to. That bench is real. We’re building a pool of firms ready to step up the moment a first-choice partner falls short. Underperformance means: poor client management, unmanaged scope creep, weak billing practices, a lack of responsiveness, or direct feedback from our lawyers that advice quality isn’t where it needs to be.’
The company is building in-house AI tools to help its lawyers pre-select firms for specific instructions and scrutinise advice and invoices.
Hambrett said it is still important to work closely with external firms - but that they cannot assume they will be retained just because they have worked with the company before.
‘Firms can no longer solely rely on soft relationship touch points to keep their place in the squad. Relationships still matter. But performance wins you minutes on the pitch. The firms that make our shortlist will be the ones that consistently deliver the right outcomes, at the right pace, with the right commercial discipline,’ he said.
Hambrett’s post on Linkedin announcing the change in policy prompted a mixture of comments from lawyers discussing the benefits of a panel firm relationship.
Richard Oliphant, a former GC and now a legal consultant, questioned the idea of playing off panel firms against each other and said there was a danger of firms losing trust in clients who did not want to work with them in the long-term.
He added: ‘The real value of external advisers lies in their more nuanced understanding of a client’s business. And that is only attainable through close and enduring collaboration.’
Senior legal counsel Leanne Murray said Revolut's announcement was part of a move towards a different type of panel appointment which reduces the risk of complacency.
‘Golden goose panel systems that a business is stuck in for years is changing,’ she added. ‘Your panel firms should always behave and perform in a way that is an extension of your business. Together you are a team to achieve the same goal.’
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