An Exploration of the Impact of Financial Technology on Financial Regulation and Protection of Financial Consumers’ Rights and Interests

Abstract

In the context of the global digital revolution, financial technology (fintech) is rapidly transforming the financial sector, reshaping service models in banking, securities, insurance, and payment systems. While fintech offers opportunities for enhancing efficiency and expanding financial inclusion, it also introduces new risks and regulatory challenges due to its rapid innovation and cross-industry nature. This study examines how fintech influences financial regulation and the protection of financial consumers’ rights and interests, exploring both the opportunities and risks created by technological innovation. Cross-border operations and technological complexity increase the challenges in aligning regulatory practices and consumer protection measures.Effective governance requires dynamic, collaborative regulatory frameworks and strengthened consumer protection mechanisms, including RegTech adoption, international regulatory cooperation, data security standards, and financial literacy programs. This study provides insights for policymakers, regulators, and industry stakeholders on adapting regulatory approaches and consumer protection strategies to the digital financial ecosystem. It highlights the need for balanced policies that foster innovation while safeguarding market stability and consumer rights, offering a comprehensive framework for sustainable fintech development.