Consumer Risks in Fintech
Categories : Consumer protection, Regulation of Digital Financial Services
Author: World Bank
Fintech is increasingly recognized as a key enabler for financial sectors worldwide, enabling more efficient and competitive financial markets while expanding access to finance for traditionally underserved consumers. Along with its benefits, fintech also poses a range of risks to consumers that need to be mitigated in order for fintech to truly benefit consumers. Some of these risks are new, but many represent new manifestations of existing risks resulting not only from the technology supporting and enabling fintech offerings but also from new or changed business models, product features, and provider types, as well as greater accessibility for consumers to sometimes unfamiliar or more complex financial product.
The primary focus of this paper by the World Bank is informing authorities’ development of regulatory policy