Just published: “Managing Risk in FinTech: Balancing Innovation, Regulation, and Consumer Protection” in the Journal of Risk Management in Financial Institutions.
As the fintech sector continues to scale at lightning speed, regulators, founders, and legacy institutions are left scrambling to keep up. From AI-powered underwriting to embedded finance APIs, we’re seeing waves of transformation, but also rising risk, especially in areas like synthetic identity fraud, model drift, and shadow compliance.
In this article, I explore the paradox many financial institutions now face: how to innovate boldly without breaking things that matter – like consumer trust, financial stability, or long-term resilience. The paper draws on insights from RegTech frameworks, global regulatory sandboxes, and my own research into risk modeling, supervisory tech, and fraud dynamics.
Some of the key findings:
-
Innovation and regulation are not at odds — but the speed mismatch between them is growing.
-
Current regulatory tools are still optimized for static processes, not real-time, data-rich environments.
-
Banks and tech companies need a shared language for risk and regulators must evolve from rule enforcers to system enablers.
-
A layered governance model combining adaptive compliance, agentic AI, and collaborative supervision may be the way forward.
This isn’t a theoretical paper. It’s a call to action: for regulators to modernize intelligently, and for fintech leaders to build with foresight — not just speed.
📄 Full article is available HERE
📰 Or access via the journal website (Journal of Risk Management in Financial Institutions – Volume 18, Issue 3):
https://www.ingentaconnect.com/content/hsp/jrmfi/2025/00000018/00000003
