Fintech innovations have transformed how financial services are delivered  and experienced. Fueled by rapid advancements in the internet, mobile technologies, and data analytics, the fintech sector has flourished globally. Both developed and emerging economies have seen a surge in fintech startups, which typically operate based on LASIC principles-asset-light, scalable, innovative, and compliance-friendly. These characteristics allow them to play a pivotal role in enhancing financial inclusion by reducing transaction costs. As fintech continues to progress, ongoing innovations are paving the way for highly adaptable and personalized products and services, reshaping traditional business models and redefining consumer experiences.

Consumer risks associated with fintech have increased significantly in scale and complexity over recent years. Among the most notable emerging risks are data misuse and fraud. Key threats include mobile app fraud, where fake applications deceive users; synthetic identity fraud, involving the creation of false identities from combined personal information; biometric identity breaches, leading to theft of human physical or behavioural data; algorithmic bias, which produces unfair or discriminatory outcomes; and authorized push payment scams, in which customers are tricked into transferring funds to accounts controlled by fraudsters under false pretenses. Addressing these challenges requires robust security measures and informed awareness (CGAP). CERISE+SPTF’s DFS Management Standards equip providers with actionable guidance to embed client – centric safeguards and reduce harm across digital delivery channel.