These companies leverage the data from their large existing user base coupled with network effects to provide contextualised or embedded financial products along with nonfinancial products. In many jurisdictions, in addition to payment systems, Big Techs have successfully expanded into credit scoring and lending. Risks from FinTech 9.
Irrespective of the type of player undertaking financial business or the type of technology underlying it, it is prone to a few fundamental sets of risks. a. For regulated entities or new entrants, depending on the business model, they face legal, reputational, governance, and operational risks in addition to the usual credit, market, and liquidity risks. b.