Research on the Application of FinTech in Handling Shortcomings of Traditional Economics in a Highly Uncertain Environment

In recent years, from the sweeping global COVID-19 pandemic to the escalating geopolitical conflicts, the vulnerability of traditional economic policy tools has been repeatedly exposed. Although monetary and fiscal policies carry the responsibility of stabilising economies, they often fail to swiftly reach the most vulnerable populations due to transmission delays and limitations in execution scope when faced with sudden upheavals. Against this backdrop, this study poses a central question: Can Financial Technology (FinTech) become a new pathway to bridge the gaps left by traditional tools? By reviewing existing research and analysing representative cases, the study explores innovative practices such as AI-driven credit scoring, decentralised finance (DeFi), stablecoins, and digital wallets, aiming to reveal their actual performance and intrinsic bottlenecks during crises. The articles findings indicate that although FinTech continues to be constrained by technological barriers, privacy risks, and lagging regulation, it has demonstrated unique and significant value in expanding financial service coverage, enabling precise fiscal interventions, and improving the efficiency of capital flows. Ultimately, the author argues that to enhance policy resilience, future systems must proactively integrate FinTech, particularly in emerging markets and countries with fragile institutions, where such transformation may be critical to survival.