| Issue |
SHS Web Conf.
Volume 225, 2025
2025 3rd International Conference on Financial Management and the Digital Economy (ICFMDE 2025)
|
|
|---|---|---|
| Article Number | 02024 | |
| Number of page(s) | 9 | |
| Section | Finance, Risk & Global Markets | |
| DOI | https://doi.org/10.1051/shsconf/202522502024 | |
| Published online | 13 November 2025 | |
FinTech and Risk Management: Exploring Opportunities, Challenges, and Regulatory Responses
Math, College of Art and Science, New York University, 383 LAFAYETTE ST, New York, United States
* Corresponding author: bz2243@nyu.edu
This paper reviews recent research (2020–2025) on how FinTech innovations are reshaping financial risk management practices. We analyze key FinTech technologies—including blockchain, big data analytics, artificial intelligence (AI) and machine learning, and regulatory technology (RegTech)—and their roles in enhancing risk identification, improving fraud prevention, and increasing decision-making efficiency. Simultaneously, FinTech introduces novel risks, such as model opacity, data privacy concerns, cybersecurity vulnerabilities, and systemic threats exemplified by cyberattacks and liquidity shocks. We also explore how these emerging risks challenge traditional regulatory frameworks, prompting innovative responses from policymakers and regulators. Ultimately, we argue that effective risk management in the FinTech era requires a delicate balance: actively leveraging the benefits of technological innovation while implementing robust risk controls, strengthening governance structures, and maintaining adaptive regulatory oversight. The future success of FinTech thus depends critically on coordinated efforts among financial institutions, technology providers, regulators, and global policymakers.
© The Authors, published by EDP Sciences, 2025
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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