Emerging Technologies and Ethics In FinTech

Abstract

This chapter examines how emerging technologies – Internet of Things (IoT), Augmented and virtual reality (AR/VR), and advanced cybersecurity – are reshaping FinTech by enabling smarter, more secure, and customer-focused services. IoT supports real-time data collection for personalized banking, usage-based lending, and smart payment systems. AR/VR introduces immersive experiences such as virtual bank branches, 3D investment tools, and interactive financial advisory, enhancing engagement and accessibility. Alongside these innovations, the chapter addresses escalating cybersecurity threats and highlights solutions like biometric authentication, AI-driven threat detection, and encryption to build digital trust. It also critically evaluates the ethical and governance challenges in FinTech, including algorithmic bias, data privacy, and the risks of digital exclusion. The discussion emphasizes fair finance principles, responsible AI deployment, and the complexities of decentralized finance (DeFi) governance. Ultimately, the chapter advocates for integrating innovation with ethical safeguards to create inclusive, transparent, and resilient financial systems.