WOULD FINTECH BE FUNDAMENTAL IN PREVENTING FINANCIAL CRISIS?

Abstract

Since the last global financial crisis, supervisory mechanisms and regulations have become stricter, boosting banks resilience and improving financial stability. Apart from the traditional financial institutions that are governed by strict regulations, standards and guidelines, the technologically advanced form of financial services commonly referred to as FinTech has introduced new developments such as quick peer to peer lending which matches lenders and borrowers directly, putting more pressure on decision-makers and supervisors. This paper discusses the preventive steps and mitigating effects of other financial crisis. The paper explores the value of international cooperation among regulators in order to preserve financial stability in the recent world of technological changes and developments. FinTech has changed consumer preferences and priorities, with an increasing number of consumers demanding fast and easy access to services through mobile phones and other electronic devices. The paper demonstrates that while emerging innovations allow for the expansion of financial services, they also introduce new challenges to the financial system in terms of micro- and macro-financial risks during periods of financial crisis.