The Dark Side of Fintech

Abstract

Fintech is one of the most prominent manifestations of the contemporary digital revolution, reshaping the way financial services are delivered through innovative solutions including electronic payments, digital lending, smart insurance, and automated wealth management. It has also contributed to expanding financial inclusion and stimulating innovation in the business environment. Fintech has imposed a new reality on the global financial sector, transcending the boundaries of traditional institutions and relying on advanced tools and technologies such as artificial intelligence, blockchain technology, and big data analysis. The dark side of fintech cannot be ignored.  Technology, as currently formulated, is not in the interest of the poor classes, as the technologies available today do not necessarily respond to the needs of low-income and vulnerable groups. They are often developed by companies seeking profit and, of course, responding to wealthier markets. Algorithms may harbor unintended biases that lead to discrimination in service delivery. The use of AI in security surveillance raises serious concerns about privacy and individual freedoms. These challenges are driving growing demands for global regulatory frameworks that ensure the ethical and responsible use of technology. Hence, bridging this gap requires a collective effort from financial technology service providers and social and legislative bodies to achieve the concept of financial technology empowerment to encompass all segments of society. Therefore, this study aims to contribute to the digital finance literature by presenting the risks associated with financial technology, especially those related to social equality.