Financial services companies often rely on outside counsel for help in a wide range of areas, from litigation to banking operations. According to data from Wolters Kluwer ELM Solutions, financial institutions have historically paid the highest hourly rates of all industries, shelling out 10% more than the next closest (industrials). Since the majority of law firms have been charging more for their work recently, now is the perfect time for financial services companies to take a hard look at what they are paying their legal partners and why.

There are many logical reasons for these higher rates in finance, including the high level of regulation in the industry. Banks and financials are also often headquartered in New York City, which can lead to them using costly firms also based there. But not all the data is so bleak. Digging deeper, financials have been able to contain rate increases better than many other industries, while also reducing overall legal spend. In this article, I’ll outline some data points financial services companies should know as they review and hire legal counsel going forward, including some suggestions for negotiating lower rates.

Containing Rate Increases

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