IDEAS home Printed from https://ideas.repec.org/a/sja/journl/v12y2023i2p249-255.html
   My bibliography  Save this article

Exploring Risks and Issues Related to Policy Making and Regulation in FinTech

Author

Listed:
  • Mejd Aures BENLALA

    (Department of Economics, University of Batna 1, Algeria.)

Abstract

This paper aims to highlight the role of FinTech in today's modern financial industry. FinTechs are often concentrated in specific activities for which they try to offer a comparative (and competitive) advantage in terms of quality or price, which is achieved through two main ways: (a) by improving the efficiency of companies through cost reduction and productivity enhancement and thus increasing profitability; and (b) by improving the quality of financial services and products offered to consumers. Then, the paper attempts to lay out and address potential risks related to: the financial institutions, consumers or customers and investors, and the pro-cyclicality and systemic risk in the markets. This requires the interaction and intervention of policy makers and regulators. Therefore, the assessment of FinTech's benefits and risks ended up with recommendations for policy makers and regulators aimed at supporting innovation in the field of finance, while ensuring that the use of FinTechs is consistent with promoting financial stability, competition and market integrity, and guaranteeing the protection of consumers and financial investors. The paper concludes that in order to keep up on these changes while upholding high standards for security, stability and consumer protection, more agile and proportional forms of regulation must be established through closer cooperation among public authorities. Given the changing financial sector, the new technology will be a lever of innovation for regulatory authorities, too.

Suggested Citation

  • Mejd Aures BENLALA, 2023. "Exploring Risks and Issues Related to Policy Making and Regulation in FinTech," Perspectives of Law and Public Administration, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 12(2), pages 249-255, June.
    • Handle: RePEc:sja:journl:v:12:y:2023:i:2:p:249-255
    as

    Download full text from publisher

    File URL: https://www.adjuris.ro/revista/articole/An12nr2/11.%20Mejd%20Aures%20Benlala.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tania Babina & Alex X. He & Anastassia Fedyk & James Hodson, 2022. "Artificial Intelligence, Firm Growth, and Product Innovation," NBER Chapters, in: Economics of Artificial Intelligence, National Bureau of Economic Research, Inc.
    2. Yahui Liu & Zhengmeng Xu & Lin Liu & Kai Zhang & Yang Meng & Yuanwei Sun & Peng Gao & Hong-Wu Zhao & Qian Niu & J. Li, 2022. "Switching magnon chirality in artificial ferrimagnet," Nature Communications, Nature, vol. 13(1), pages 1-7, December.
    3. Qingquan Tony Zhang & Beibei Li & Danxia Xie, 2022. "Alternative Data and Artificial Intelligence Techniques," Palgrave Studies in Risk and Insurance, Palgrave Macmillan, number 978-3-031-11612-4, June.
    4. Mengfan Li & Yongping Xie & Yuge Gao & Yanan Zhao, 2022. "Organization virtualization driven by artificial intelligence," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 633-640, May.
    5. Ariel K. H. Lui & Maggie C. M. Lee & Eric W. T. Ngai, 2022. "Impact of artificial intelligence investment on firm value," Annals of Operations Research, Springer, vol. 308(1), pages 373-388, January.
    6. Mabrouka Shahat Younis & Elfargani, 2022. "The Benefits Of Artificial Intelligence In Construction Projects," Acta Informatica Malaysia (AIM), Zibeline International Publishing, vol. 6(2), pages 47-51, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Konstantinos Mira & Francesca Bugiotti & Tatiana Morosuk, 2023. "Artificial Intelligence and Machine Learning in Energy Conversion and Management," Energies, MDPI, vol. 16(23), pages 1-36, November.
    2. Czarnitzki, Dirk & Fernández, Gastón P. & Rammer, Christian, 2023. "Artificial intelligence and firm-level productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 188-205.
    3. Lívia Kelebercová & Michal Munk & František Forgáč, 2023. "Could You Understand Me? The Relationship among Method Complexity, Preprocessing Complexity, Interpretability, and Accuracy," Mathematics, MDPI, vol. 11(13), pages 1-15, June.
    4. Jeffrey Mollins & Temel Taskin, 2023. "Digitalization: Productivity," Discussion Papers 2023-17, Bank of Canada.
    5. Gong Cheng & Eric Jondeau & Benoit Mojon & Dimitri Vayanos, 2023. "The impact of green investors on stock prices," BIS Working Papers 1127, Bank for International Settlements.
    6. Cresswell, Kathrin & Rigby, Michael & Magrabi, Farah & Scott, Philip & Brender, Jytte & Craven, Catherine K. & Wong, Zoie Shui-Yee & Kukhareva, Polina & Ammenwerth, Elske & Georgiou, Andrew & Medlock,, 2023. "The need to strengthen the evaluation of the impact of Artificial Intelligence-based decision support systems on healthcare provision," Health Policy, Elsevier, vol. 136(C).
    7. Chi Zhang & Xinyang Li & Andrea Tamoni & Misha Beek & Andrew Ang, 2024. "ESG risk and returns implied by demand-based asset pricing models," Journal of Asset Management, Palgrave Macmillan, vol. 25(3), pages 203-221, May.
    8. Paolo Carioli & Dirk Czarnitzki & Gastón P Fernández Barros, 2024. "Evidence on the Adoption of Artificial Intelligence: The Role of Skills Shortage," Working Papers of Department of Management, Strategy and Innovation, Leuven 735893, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    9. Arntz, Melanie & Genz, Sabrina & Gregory, Terry & Lehmer, Florian & Zierahn-Weilage, Ulrich, 2024. "De-Routinization in the Fourth Industrial Revolution - Firm-Level Evidence," IZA Discussion Papers 16740, Institute of Labor Economics (IZA).
    10. Cheng, Weixuan & Li, Cheng & Zhao, Tianjiao, 2024. "The stages of enterprise digital transformation and its impact on internal control: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 92(C).
    11. Naonobu Okazaki & Shotaro Usuzaki & Tsubasa Waki & Hyoga Kawagoe & Mirang Park & Hisaaki Yamaba & Kentaro Aburada, 2024. "Optimal Weighted Voting-Based Collaborated Malware Detection for Zero-Day Malware: A Case Study on VirusTotal and MalwareBazaar," Future Internet, MDPI, vol. 16(8), pages 1-16, July.
    12. Yaliu Yang & Yuan Wang & Yingyan Zhang & Conghu Liu, 2022. "Data-Driven Coupling Coordination Development of Regional Innovation EROB Composite System: An Integrated Model Perspective," Mathematics, MDPI, vol. 10(13), pages 1-25, June.
    13. Anastassia Fedyk & James Hodson, 2023. "Trading on Talent: Human Capital and Firm Performance," Review of Finance, European Finance Association, vol. 27(5), pages 1659-1698.
    14. Guo, Chenhao & Ke, Yun & Zhang, Jinkang, 2023. "Digital transformation along the supply chain," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    15. Li Da Xu, 2022. "Systems research on artificial intelligence," Systems Research and Behavioral Science, Wiley Blackwell, vol. 39(3), pages 359-360, May.
    16. Chen, Chuanglian & Wang, Shudan & Yao, Shujie & Lin, Yuting, 2023. "Does digital transformation increase the labor income share? From a perspective of resources reallocation," Economic Modelling, Elsevier, vol. 128(C).
    17. Alejandro Lopez-Lira & Yuehua Tang, 2023. "Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models," Papers 2304.07619, arXiv.org, revised Sep 2024.

    More about this item

    Keywords

    efinance; FinTech; policies; regulations.;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sja:journl:v:12:y:2023:i:2:p:249-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catalin-Silviu Sararu (email available below). General contact details of provider: https://edirc.repec.org/data/ssjarea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.