Managing Customer Trust and Privacy in FinTech Services: Ethical and Legal Perspectives

Abstract

Financial technology (FinTech) is changing the financial services landscape at a dramatic rate. FinTech is rapidly advancing due to it being intertwined with artificial intelligence (AI) and big data analytics. These technologies provide better service delivery, higher standards of personalization and efficiency, and help prevent fraud. However, all good innovations come at a cost, as AI and big data can also raise ethical and legal questions as it mainly focuses on consumer data privacy, trust, and regulatory ethical obligations. This study attempts to understand how FinTech organizations can leverage technological advancement in data use and ethics to maintain and build customer trust while conceptualizing a sustainable FinTech environment. A descriptive research design, undertook quantitative research was employed for this study, to understand user perceptions regarding AI and FinTech technology trust, especially around privacy concerns, transparency, and regulatory compliance. The study found that ethical AI use, clear data policies, as well as ethical and regulatory compliance directly impacted consumer trust. In this regard, the study provides an understanding of what FinTech firms and organizations should do around trust, compliance, and transparency to adopt and migrate to established digitally sustainable financing systems.