Why Fintech Could Lead to More Financial Crime

CFA Institute Magazine
October 2017 | Vol. 28 | No. 3
Source: CFA Institute
Cynthia Harrington, CFA

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Summary

Fintech startups aim to disrupt current practices and to do it fast. The emerging business model requires product managers find a buyer need, put out a minimum viable product, and iterate change in response to customer use. However, all this innovation—especially with entrepreneurs who have more tech savvy than experience in financial services—opens opportunities to defraud. Knowing what to look for can help investors and operations managers properly identify risk and reduce the vulnerability to financial crimes.

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