Unit:
Κατεύθυνση Εσωτερικός ΈλεγχοςLibrary of the Faculty of Economics and of the Faculty of Business Administration
Author:
Papatsori Panagiota
Supervisors info:
Καλφάογλου Φαίδων, Επιστημονικός Συνεργάτης, Τμήμα Οικονομικών Επιστημών, ΕΚΠΑ
Original Title:
The challenges and recent developments in the compliance function of the Fintech companies.
Translated title:
The challenges and recent developments in the compliance function of the Fintech companies.
Summary:
The 4rth Industrial Revolution has brought changes in almost all aspects of our lives and consequently to the way we interact with money and financial services. Several financial innovations like the Blockchain Technology, the Distributed Ledger Technology, the Cryptocurrencies, the Smart Contracts, the Big Data etc have changed the financial landscape with the new technologically advanced services they provide like the electronic wallets, the digital payment servicem, the robo – the advice, peer – to – the peer lending, crowdfunding etc.
These companies face risks like prudential and non – compliance risks, fraud risk, third party – reliance failure risk etc. The compliance function, as a part of the company’s second line of defence, plays a significant part in risk mitigation.
This paper describes the technological innovations and the most common financial services these companies offer. Afterwards, the risks that this industry faces are explained and the role of the compliance function in risk mitigation is analysed. Finally, four relevant case studies are presented that signify the need for solid corporate governance practices in this industry and the importance of the compliance function. The modern fin tech ecosystem proposes that companies and legal entities become self-regulated using smart contracts, Artificial Intelligence etc. This thesis tries to prove that this is not yet the case and that the existence of the compliance function (along with the other lines of defence of course) is indispensable.
Main subject category:
Social, Political and Economic sciences
Keywords:
fintech, compliance function, technological innovations, 4rth Industrial Revolution, Blockchain Technology, compliance officer,
