Kord launches first dedicated legal sort code

In a significant move for the legal sector, UK fintech Kord is launching the country’s first dedicated legal sort code, 04-10-26. This innovative payment infrastructure, known as Kord Custody, aims to revolutionise legal transactions by removing the constraints of traditional banking hours, facilitating instant settlements while reducing the associated risks of fraud. Unlike conventional banking systems that legal transactions have relied upon for decades, this new sort code provides a secure and efficient payment method specifically designed for law firms.

James Owusu, CEO and founder of Kord, expressed the importance of this advancement, stating “Buying a home or settling a major commercial matter should not depend on whether a bank is open. This launch marks the moment that legal transactions leave banking hours behind. Crucially, it provides enhanced security alongside greater operational efficiency.” He explained that the new infrastructure will significantly reduce opportunities for fraud, particularly noting the issue of risk on Friday afternoons when legal transactions are often rushed.

Kord’s solution caters to a range of eligible regulated law firms across the UK and enhances the visibility of transactions by ensuring all accounts linked to the new sort code belong to verified regulated firms. Steve Carle, Kord Board Director appointed by Guinness Ventures, stated “Kord Custody sits alongside Kord's existing client verification (Checkboard), eligibility (Kord Data), and secure payments (Kord Pay) propositions, supplying the missing link to law firms to enable high-value transactions, backed up by a full audit.”

By ensuring that trusted counterparties are identified before sending client money, Kord is aiming to create a robust system that reduces fraud risk. Participating firms can benefit from immediate fund transfers at any time, including weekends, thereby eliminating operational bottlenecks that have long plagued the legal sector. Kiu Kim, Investment Director at Beringea and Board Director at Kord, highlighted the significance of this infrastructure, saying “Client money sits at the centre of a law firm's risk, and the infrastructure managing it hasn't kept pace with regulation. Kord Custody removes that risk at source rather than insuring against it after the fact, and is the kind of category-defining product we backed Kord to build.”

With Kord's Custody service, legal firms now have access to a secure network for managing client funds safely under FCA safeguarding regulations, while payments can also be made through various channels, including Faster Payments, CHAPS, BACS, and digital wallets. Kord’s launch signifies a transformative shift in how legal transactions can be conducted in the UK, paving the way for a more efficient and secure financial landscape for the legal industry.