Legal Challenges of Supervising Financial Technology in the Banking Sector

Zahra  Yousefian; Ali Zare; Maryam  Khalili Araghi; Mahdi  Madanchi Zaj

Authors

Zahra Yousefian Department of Financial Management, SR.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0009-0000-5392-3069
Ali Zare Department of Private Law, SR.C., Islamic Azad University, Tehran, Iran https://orcid.org/0000-0001-8957-1376
Maryam Khalili Araghi Department of Financial Management, SR.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0000-0001-5016-2997
Mahdi Madanchi Zaj Department of Financial Management, CT.C., Islamic Azad University, Tehran, Iran Author https://orcid.org/0000-0003-0950-6545

Keywords:

FinTech, RegTech, Sandbox, Legal Challenges

Abstract

This article examines the challenges facing financial technology (FinTech) within the legal framework and the process of regulating its activities in the banking sector. By introducing innovation into traditional banking services, FinTech creates significant challenges for regulatory authorities in adapting existing legal frameworks to accommodate these technological advancements. Achieving a balance between promoting innovation, protecting consumers, and maintaining financial stability is essential. The regulatory framework must be sufficiently flexible to foster innovation while ensuring that FinTech companies operate within the bounds of the law and safeguard the interests of all stakeholders involved.

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