The Impact of Financial Technology and Cyber Risk on Non-Bank Financial Intermediation

Nomasomi Ngonyama (), Bahle Mgxekwa () and Kin Sibanda ()
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Nomasomi Ngonyama: University of Fort Hare
Bahle Mgxekwa: University of Fort Hare
Kin Sibanda: Walter Sisulu University

Chapter Chapter 11 in Shadow Banking and Financial Risk in Emerging and Developing Markets, 2025, pp 275-306 from Palgrave Macmillan

Abstract: Abstract This chapter examined the role of financial technology (fintech) in shaping the operations of non-bank financial intermediaries (NBFIs). It investigated key areas such as operational efficiency, credit expansion, financial inclusion, and shifts in market structure driven by technological advancements. Additionally, the chapter highlighted the growing cyber risks associated with fintech adoption, including data breaches and unauthorized access to sensitive financial data, which pose significant threats due to the high-value information held by NBFIs. The discussion extends to the implications for global regulatory frameworks, particularly concerning anti-money laundering (AML) and counter-terrorism financing (CTF) measures. Through a comprehensive literature review, the chapter assessed how cybersecurity vulnerabilities in NBFIs could potentially destabilize the broader financial ecosystem. The findings aim to inform policymakers and industry stakeholders on balancing innovation with risk mitigation in an increasingly digital financial landscape.

Keywords: Fintech; Non-Bank Financial Intermediaries (NBFIs); Financial inclusion; Cyber risks; Data security; Financial regulation; Anti-Money Laundering (AML); Counter-Terrorism Financing (CTF); Market Structure; Credit Expansion (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-86224-3_11

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DOI: 10.1007/978-3-031-86224-3_11

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