The impact of FinTech on reshaping the financial landscape: A perspective
Abstract
This paper provides perspective on the transformative opportunities and risks from FinTech innovations actively reshaping the financial landscape. It aims to offer a balanced view of how these advancements can drive positive change while addressing the challenges they may present. For example, these innovations significantly enhance service levels through various methodologies and technologies; however, they also introduce considerable risks that must be addressed. The paper begins by outlining the FinTech industry’s defining characteristics, followed by examining its associated risks and opportunities. Additionally, the paper explores the unique aspects of selected FinTech companies, offering insights into their operational models and strategies. It also reviews the regulatory frameworks governing these enterprises to illuminate their legal and compliance challenges. Key considerations for potential investors are also provided, emphasising the importance of understanding the unique risks and rewards. The paper concludes that the outlook for FinTech is optimistic, presenting substantial transformative potential; however, effectively navigating the complexities in the evolving FinTech industry requires collaboration among all stakeholders, including entrepreneurs, regulators, investors, financial institutions and consumers. Such collaboration is essential for leveraging the advantages of FinTech while addressing the potential risks associated with its rapid development. This paper is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
The full article is available to subscribers to the journal.
Author's Biography
Michel Crouhy Dr Michel Crouhy, a managing partner at Black Diamond Advisory, serves as a senior adviser to Natixis. Previously, he was head of Research and Development at Natixis and Head of Risk Analytics at the Canadian Imperial Bank of Commerce. Michel is a member of the Research Advisory Council of the Global Risk Institute, a member of the Scientific Executive Board of the Louis Bachelier Institute and a co-founder of the Professional Risk Managers’ International Association (PRMIA).
Dan Galai Dr Dan Galai is the Abe Gray Professor (Emeritus) of Finance and Business Administration at the Hebrew University, Jerusalem, in the School of Business Administration. He serves on the boards of a new digital bank and a few technological startups. Dan is a co-founder of the Professional Risk Managers’ International Association (PRMIA).
Robert Mark Dr Robert Mark, a managing partner at Black Diamond Risk Enterprises, serves on several boards, led treasury/trading activities and was a Chief Risk Officer at Tier 1 banks. Bob was the partner responsible for leading a Tier 1 accounting company’s risk management consulting practice, the Founding Executive Director of the MFE Program at UCLA, and has published extensively in leading business and finance journals. Bob is a co-founder of the Professional Risk Managers’ International Association (PRMIA) and was awarded the GARP Financial Risk Manager of the Year.
Citation
Crouhy, Michel, Galai, Dan and Mark, Robert (2025, June 1). The impact of FinTech on reshaping the financial landscape: A perspective. In the Journal of Risk Management in Financial Institutions, Volume 18, Issue 3. https://doi.org/10.69554/DXYL1227.
Publications LLP