FinTech and Financial Management: A Systematic Literature Review of Innovation, Financial Performance, and Risk

Abstract

FinTech has emerged as a major force in transforming financial management by introducing digital technologies, innovative financial services, and data-driven decision-making. This study aims to systematically review the literature on the relationship between FinTech, financial innovation, financial performance, and financial risk. A Systematic Literature Review (SLR) approach was employed to identify, screen, and synthesize relevant peer-reviewed studies concerning the development and implications of FinTech in financial management. The findings indicate that FinTech technologies, including artificial intelligence, big data analytics, blockchain, mobile payment systems, and digital banking, contribute to financial innovation, operational efficiency, service accessibility, and data-driven decision-making. FinTech can consequently improve financial performance through cost reduction, process automation, enhanced customer engagement, and the development of new financial business models. However, the benefits of FinTech are not automatic and depend on organizational capabilities, technological readiness, regulatory environments, and effective strategic implementation. The review also identifies a dual relationship between FinTech and financial risk. While digital technologies can strengthen risk assessment, fraud detection, and financial monitoring, they simultaneously create emerging risks related to cybersecurity, data privacy, algorithmic bias, operational disruption, and regulatory uncertainty. The study concludes that FinTech should be viewed as a strategic capability requiring a balance between innovation, financial performance, risk management, and financial stability. Future research should focus on AI-driven financial management, responsible FinTech governance, cybersecurity, financial inclusion, and the long-term performance implications of digital financial transformation.