Assessing the impact of financial technology: Is it a curse or blessing for financial crimes in financial institutions?

Tipon Tanchangya (), Kamron Naher (), Md Rakib Mia (), Srima Chowdhury () and Naimul Islam ()

Financial Risk and Management Reviews, 2025, vol. 11, issue 1, 1-36

Abstract: The study aims to assess the dual (positive and negative) impact of FinTech in financial institutions. In this study, secondary data were used, and they were collected from Web of Science, Scopus, ScienceDirect, and Google Scholar. In this regard, the key FinTech technologies are identified, including blockchain and distributed ledger technology, artificial intelligence and machine learning, robo-advisors, mobile banking and digital banking, regulatory technology, and cloud computing. While major financial crimes are fraud, money laundering, insider trading, bribery and corruption, tax evasion, and cybercrime, The study shows that AI algorithms help to identify criminal activities, including credit card fraud, theft, and account takeovers, and ensure data privacy, accountability, and transparency. Blockchain is useful for trustless transactions since it creates an unchangeable and secure, transparent record of every transaction. Big data analytics help to acquire insights into customer behaviour and preferences. RegTech tracks online transactions in real time to spot anomalies in the realm of digital payments. On the other hand, FinTech is one of the most effective tools to facilitate cybercrime. Moreover, the study shows the framework FinTech has for mitigating wrongdoing, regulatory shortages, and customer threats. The article provides several implications for several stakeholders in the financial sector.

Keywords: Blessing of financial technologies; Curse of financial technologies; Financial crimes; Financial institutions; Financial technologies; Cybercrimes. (search for similar items in EconPapers)
Date: 2025
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