FINTECH RISK MANAGEMENT: BALANCING INNOVATION AND COMPLIANCE IN FINANCIAL SERVICES

Abstract

The rapid evolution of financial technology (FinTech) has revolutionized the delivery of financial services, fostering innovation and enhanced customer experiences. However, this transformation introduces complex risks, including regulatory, operational, and cybersecurity challenges. Effective risk management in FinTech requires a delicate balance between embracing innovation and adhering to stringent compliance requirements. This paper explores the key risk factors inherent in FinTech ecosystems and proposes strategic frameworks for integrating risk mitigation without stifling technological advancement. By aligning regulatory compliance with agile risk management practices, financial institutions can foster sustainable growth while protecting stakeholders and maintaining trust.