Legal Challenges for International Fintech Startups
Abstract views: 545
/ 
PDF downloads: 454
DOI:
https://doi.org/10.59022/ijlp.148Keywords:
Fintech, Startups, Regulations, Jurisdictions, InnovationsAbstract
Financial technology (Fintech) startups looking to scale globally often face complex regulations across jurisdictions inhibiting market access and rapid customer adoption. This research investigates legal obstacles frequently encountering international Fintech platforms through qualitative research methods. It aims to highlight recurring concerns like data sovereignty, interoperability, licensing barriers and talent acquisition issues for innovators attempting multi-country service availability. Though results indicate regulatory principles remain largely unharmonized currently, recommendations urge sectoral cooperation advancing unified standards spanning data management, oversight rules and open banking architectures. Phasing proportionate need-based compliances and controlled sandboxes can enable clearer policy signaling benefiting responsibly expanding startups. Effective policy incentives and dispute assistance schemes may ease market entry and sustain trust lacking today. However, truly unraveling Fintech possibilities requires expediting progressive, agile and internationally integrated legal systems protecting consumers while fostering inclusive innovation ecosystems.
References
Basdekis, C., Christopoulos, A., Katsampoxakis, I., et al. (2022). FinTech’s rapid growth and its effect on the banking sector. Journal of Bank and Financial Technology, 6, 159–176. https://doi.org/10.1007/s42786-022-00045-w
Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35-46. https://doi.org/10.1016/j.bushor.2017.09.003
Murinde, V., Rizopoulos, E., & Zachariadis, M. (2022). The impact of the FinTech revolution on the future of banking: Opportunities and risks. International Review of Financial Analysis, 81, 102103. https://doi.org/10.1016/j.irfa.2022.102103
Alaassar, A., Mention, A. L., & Aas, T. H. (2023). Facilitating innovation in FinTech: A review and research agenda. Review of Management Science, 17, 33–66. https://doi.org/10.1007/s11846-022-00531-x
Bowen, G. A. (2009). Document Analysis as a Qualitative Research Method. Qualitative Research Journal, 9(2), 27-40. http://dx.doi.org/10.3316/QRJ0902027
Lacy-Nichols, J., Quinn, M., & Cullerton, K. (2023). Aiding empirical research on the commercial determinants of health: a scoping review of datasets and methods about lobbying. Health Research Policy and Systems, 21(56).
Hummel, P., Braun, M., & Dabrock, P. (2021). Data sovereignty: A review. Big Data & Society, Impact Factor: 8.5, 5-Year Impact Factor: 9.2, Open access. https://doi.org/10.1177/205395172098201
Li, J., Dong, W., Zhang, C., & Zhuo, Z. (2022). Development of a risk index for cross-border data movement. Data Science and Management, 5(3), 97-104. https://doi.org/10.1016/j.dsm.2022.05.003
Sun, L., Zhang, H., & Fang, C. (2021). Data security governance in the era of big data: status, challenges, and prospects. Data Science and Management, 2, 41-44. https://doi.org/10.1016/j.dsm.2021.06.001
Chin, Y.-C., & Zhao, J. (2022). Governing Cross-Border Data Flows: International Trade Agreements and Their Limits. Laws, 11(4), 63. https://doi.org/10.3390/laws11040063
Sanga, B., & Aziakpono, M. (2023). FinTech and SMEs financing: A systematic literature review and bibliometric analysis. Digital Business, 3(2), 100067. https://doi.org/10.1016/j.digbus.2023.100067
Jourdan, Z., Corley, J. K., Valentine, R., et al. (2023). Fintech: A content analysis of the finance and information systems literature. Electron Markets, 33(2). https://doi.org/10.1007/s12525-023-00624-9
Osei, L.K., Cherkasova, Y., & Oware, K.M. (2023). Unlocking the full potential of digital transformation in banking: A bibliometric review and emerging trend. Future Business Journal, 9, 30. https://doi.org/10.1186/s43093-023-00207-2
Rafiuddin, A., Tellez Gaytan, J. C., Mohnot, R., Sisodia, G. S., & Ahmed, G. (2023). Growth evaluation of fintech connectedness with innovative thematic indices – An evidence through wavelet analysis. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100023. https://doi.org/10.1016/j.joitmc.2023.100023
Tepe, G., Geyikci, U. B., & Sancak, F. M. (2022). FinTech Companies: A Bibliometric Analysis. International Journal of Financial Studies, 10(1), 2. https://doi.org/10.3390/ijfs10010002
Garg, G., Shamshad, M., Gauhar, N., Tabash, M. I., Hamouri, B., & Daniel, L. N. (2023). A Bibliometric Analysis of Fintech Trends: An Empirical Investigation. International Journal of Financial Studies, 11(2), 79. https://doi.org/10.3390/ijfs11020079
Khurana, K. (2023). A Bibliometric Study of Publications on Adoption of FinTech. Journal of Educational Technology Systems, 51(4), https://doi.org/10.1177/00472395231165715
Anagnostopoulos, I. (2018). Fintech and regtech: Impact on regulators and banks. Journal of Economics and Business, 100, 7-25. https://doi.org/10.1016/j.jeconbus.2018.07.003
Jain, R., Kumar, S., Sood, K., Grima, S., & Rupeika-Apoga, R. (2023). A Systematic Literature Review of the Risk Landscape in Fintech. Risks, 11(2), 36. https://doi.org/10.3390/risks11020036
Alekseenko, A. P. (2023). Model Framework for Consumer Protection and Crypto-Exchanges Regulation. Journal of Risk and Financial Management, 16(7), 305. https://doi.org/10.3390/jrfm16070305
Betz, U. A. K., Arora, L., Assal, R. A., Azevedo, H., Baldwin, J., Becker, M. S., ... Zhao, G. (2023). Game changers in science and technology - now and beyond. Technological Forecasting and Social Change, 193, 122588. https://doi.org/10.1016/j.techfore.2023.122588
Wan, S., Lee, Y. H., & Sarma, V. J. (2023). Is Fintech good for green finance? Empirical evidence from listed banks in China. Economic Analysis and Policy, 80, 1273-1291. https://doi.org/10.1016/j.eap.2023.10.019
Khan, H. H., Khan, S., & Ghafoor, A. (2023). Fintech adoption, the regulatory environment and bank stability: An empirical investigation from GCC economies. Borsa Istanbul Review, 23(6), 1263-1281. https://doi.org/10.1016/j.bir.2023.10.010
Aldboush, H. H. H., & Ferdous, M. (2023). Building Trust in Fintech: An Analysis of Ethical and Privacy Considerations in the Intersection of Big Data, AI, and Customer Trust. International Journal of Financial Studies, 11(3), 90. https://doi.org/10.3390/ijfs11030090
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Naeem AllahRakha
This work is licensed under a Creative Commons Attribution 4.0 International License.
