A perfect storm: ethical challenges for consumer fintech in developing economies

Purpose Financial technologies are transforming the international banking industry and generating significant value. The purpose of this review essay is to examine potential issues from a consumer perspective that may arise from the implementation of fintech in developing economies, identify the underlying ethical factors and propose actions for the public, private and civil society sectors to mitigate the impact on consumers. Design/methodology/approach The authors use a metaphor of the “perfect storm” to highlight the converging forces affecting the consumers of fintech in emerging markets. Through a review of the literature, ethical analysis and examples, the authors highlight the key consumer issues and the negative externalities that fintech entrepreneurs, governments and civil society will need to address. Findings Fintech technologies have the potential to widen the digital divide, leading to even greater levels of inequality, especially for the most vulnerable, including women, rural populations, the uneducated, low-income adults and those lacking technological access and financial literacy. Practical implications This review essay provides guidance for fintech managers and entrepreneurs on exploring opportunities in less developed markets in response to unmet consumer needs. Originality/value Using a “perfect storm” metaphor, the essay takes a critical perspective on the benefits of fintech, exposing the ethical issues involved in implementing fintech in developing economies. This perspective adds insight to the extant literature.