Most NDAs won’t save Fintech companies

This week has been a whirlwind - I’ve been invited to more communities, events, and private groups than I can keep track of.

But what's really caught me off guard is how many lawyers have been reaching out, not for legal tips, but to ask how I’ve built a brand that’s starting to get noticed.

It’s a humbling reminder that people are paying attention, often quietly, watching what you’re putting out into the world.

Maybe you’ve felt that too - those moments when you realize your work is resonating, even if it’s taken years of showing up to get there.

On the work front, I’ve been streamlining how I do things, which has freed up some extra time.

But that’s brought a new puzzle: how do you make the most of those hours?

For now, I’m pouring that energy into market research for a product I’ve been mulling over for a while. There’s no hurry - I keep reminding myself that the best things come together when you take your time and keep at it.

That’s true for building a brand, a product, or even something as critical as your fintech contracts.

And speaking of contracts, let’s talk about something that could trip you up if you’re not careful: your Non-Disclosure Agreement (NDA).

You might think a quick Google search and a copied template will cover you, but in fintech, that’s like bringing a paper umbrella to a monsoon.

So let me share with you why this matters and how you can make your NDA much better.

The Hidden Danger of a Generic NDA in Fintech

Let’s say you’re running a fintech startup - maybe a platform that helps investors manage portfolios or processes UPI payments.

You’re working with partners, sharing sensitive details, and you’ve got everyone signing NDAs to keep things safe.

You feel pretty good about it, thinking, “I’ve got this locked down.” But then someone asks, “Hey, who actually owns the investor data we’re sharing?”

If you’re not sure - or if your NDA doesn’t spell it out - you’ve got a problem.

And unlike other industries where NDAs might cover pitch decks or product sketches, you’re dealing with stuff like investor KYC documents, transaction histories, linked bank accounts, portfolio details, and personal identifiers tied to strict rules from SEBI, RBI, and the DPDP Act in India.

If your NDA is vague or just a boilerplate you grabbed online, it’s not going to hold up when things get serious.

A weak NDA could leave you exposed to disputes, regulatory fines, or even legal battles, all because you didn’t nail down the details upfront.

The problem with those generic NDAs is they miss the mark in a few key ways.

They don’t clearly define what counts as protected data, so “confidential information” becomes a catch-all that doesn’t cover the specifics of investor data.

They don’t say who owns that data - is it yours, the platform’s, or the user’s? Without clarity, you’re inviting arguments.

They also tend to skip what happens when the partnership ends, leaving questions about whether data gets deleted or handed over.

And worst of all, they often ignore India’s unique regulatory landscape, which can land you in hot water if you’re not aligned with SEBI or RBI expectations.

But don’t worry - you can fix this before it becomes a headache.

5 Steps to Build an NDA That Protects Your Fintech Business

To make sure your NDA is ready for the fintech world, you need to go beyond the basics and tailor it to the data and regulations you’re dealing with.

Now the steps I'm sharing are designed to plug the gaps that could otherwise cost you time, money, or trust.

I’ll walk you through each one and explain why it’s a must for your business.

1. Call Out Investor Data as Its Own Thing

Add a clause like this to your NDA:  

“Investor Data includes any information tied to KYC documents, financial transactions, account identifiers, portfolio allocations, or data required under SEBI, RBI, or DPDP compliance frameworks.”

This is critical because fintech data isn’t just “stuff” - it’s specific and sensitive.

By carving out a clear definition, you’re making it crystal clear what’s off-limits, so there’s no room for partners to claim they didn’t know what was covered.

This matters for compliance too - if regulators like SEBI or RBI come knocking, you can show you’ve taken data protection seriously.

Without this, you risk misunderstandings that could lead to breaches or disputes, which is the last thing you need when you’re trying to scale.

2. Nail Down Who Owns What and How It’s Used

Include a line like:  

“The Client remains the sole owner of Investor Data. Access is granted only for functional use within the platform and cannot be shared, sold, or exported.”

This one’s a lifesaver. In fintech, data ownership is a hot potato - everyone from investors to regulators wants to know who’s calling the shots.

By stating that the client (or user) owns their data and setting strict rules on how your partners can use it, you’re preventing scenarios where someone might misuse it, like sharing it with a third party or keeping it after the deal ends.

This builds trust with your clients and keeps you on the right side of laws like the DPDP Act, which can slap hefty penalties for sloppy data handling.

3. Plan for Breaches and Track Access

Make sure your NDA says something like:  

“In case of a data breach, the Vendor will notify us within 72 hours and provide access logs showing who accessed Investor Data.”

Breaches happen, and in fintech, they’re not just a PR problem - they’re a regulatory one.

This clause ensures your partner has to act fast if something goes wrong, giving you a heads-up to manage the fallout and comply with RBI or SEBI timelines.

The access logs part is key too - it lets you see who’s been poking around in the data, which helps you spot issues early and prove you’re doing your due diligence.

Without this, you’re flying blind, and that’s a risky place to be when regulators or clients start asking questions.

4. Spell Out What Happens When the Deal Ends

Add a clause like:  

“Upon termination, the Vendor will delete all Investor Data within 30 days and provide written confirmation, or export it in a usable format at our request.”

This is your exit strategy for data. When a partnership wraps up, you don’t want your sensitive data lingering on someone else’s servers or worse, being used without your permission.

By setting a clear timeline and process, you’re making sure the data either gets wiped clean or handed back in a way you can actually use.

This protects your clients’ privacy and keeps you compliant with laws that demand data be handled properly even after a deal ends. Skip this, and you’re gambling with trust and legal exposure.

5. Tie It to Indian Regulations

Make sure your NDA includes:  

“All handling of Investor Data will comply with SEBI circulars, RBI mandates, and the DPDP Act.”

Generic privacy terms won’t cut it in India’s fintech space. SEBI, RBI, and the DPDP Act have specific rules about how data like KYC or transaction records need to be protected.

By explicitly referencing these, you’re showing partners and regulators that you know the landscape and are committed to playing by the rules.

This can make or break a deal with enterprise clients who need to see regulatory alignment before signing. Without it, you risk delays or outright rejections from partners who can’t take the compliance chance.

Your Quick Checklist for a Fintech-Ready NDA

Here’s a simple rundown to make sure your NDA is serving you:  

• Define investor data clearly: Spell out KYC, transactions, and compliance data.  

• Set ownership rules: Make it clear who owns it and how it can be used.  

• Plan for breaches: Demand fast notification and access logs.  

• Cover the exit: Ensure data’s deleted or returned properly.  

• Align with regulations: Reference SEBI, RBI, and DPDP explicitly.

With these in place, your NDA becomes much better for your fintech business.

Why This Matters for Your Fintech Journey

In fintech, NDAs are your first line of defense in a world where data is both your biggest asset and your biggest risk.

A flimsy NDA copied from a random template won’t give your investors or partners confidence - it’ll raise red flags.

And if something goes wrong, like a data leak or a regulatory audit, the trouble won’t come from what you did; it’ll come from what your contract didn’t cover.

Think about it like this: you’ve spent years building your fintech startup, pouring time into perfecting your product, and earning trust.

One vague NDA could unravel that faster than you’d believe, costing you clients, cash, or even your reputation.

But with a tailored, regulation-ready NDA, you’re showing everyone you work with that you’re serious about their data and their trust.

That’s the kind of clarity that turns partnerships into wins and keeps your business growing.

So, next time you’re using an NDA, don’t just grab the first template you find.

Take a moment to customize it to fit fintech’s unique demands.

It’s a small step that could save you from a world of pain and set you up to keep building something that lasts.