Risks of Financial technology from a legal and economic perspective in light of Saudi Arabia's Vision 2030

Abstract

The rapid developments in the field of financial technology (FinTech) have led to fundamental transformations in the traditional structure of the financial sector by introducing innovative financial services based on digital solutions, such as electronic payments, digital lending, crowdfunding, and artificial intelligence and blockchain technologies. Despite the positive contribution of these technologies in enhancing financial inclusion and improving the efficiency of financial services, they have also given rise to a complex set of legal, economic, and technological risks that may affect the stability of the financial system and the confidence of market participants.

This study aims to analyze FinTech-related risks from both legal and economic perspectives, with a particular focus on the regulatory environment in the Kingdom of Saudi Arabia, in light of Saudi Vision 2030, which promotes digital transformation and the development of the financial sector. The study adopts a descriptive-analytical methodology and examines the regulations and rules issued by the Saudi Central Bank and the Capital Market Authority. The study concludes that effective management of FinTech risks requires the adoption of integrated governance frameworks, enhanced coordination among regulatory authorities, and the development of flexible legislation that balances the promotion of financial innovation with the protection of financial and economic stability.