Cyber Risk in Financial Technologies (FinTech) and Customer Trust

Abstract

ABSTRACT

Financial Technologies (FinTech) have revolutionized financial services by offering innovative solutions such as digital payments, peer-to-peer lending, robo-advisory, and blockchain-based platforms. However, the rapid adoption of FinTech has amplified cyber risks, including data breaches, fraudulent transactions, and platform vulnerabilities. Customer trust is crucial for FinTech adoption, as users must feel confident in the security, privacy, and reliability of these services. This paper explores the relationship between cyber risk in FinTech and customer trust. It examines risk sources, trust determinants, regulatory frameworks, and mitigation strategies. A conceptual framework is proposed to demonstrate how cyber risk management, transparency, and compliance collectively influence customer trust. The paper emphasizes that robust cybersecurity and proactive risk communication are essential for sustaining user confidence in FinTech ecosystems.

KEYWORDS: FinTech, Cyber Risk, Customer Trust, Digital Payments, Regulatory Compliance