Regulation in financial technologies

Rapidly growing technology affects our lives deeply. The finance sector is undergoing a major transformation in line with this changing and developing technology. Especially with the development of technology, digitalization creates new approaches. Financial Technology (Fintech) is one of these new approaches. With the developments experienced after the 2008 Global Economic Crisis, the consumer structure underwent a major transformation, and significant changes were experienced in the financial sector. Fintechs have affected ways of doing business in financial services, especially in banking, insurance and payment services and changed the dynamics in the financial system. Since the rapidly growing fintech sector is a new field, unlike traditional financial methods, it is not subject to any regulation. Although this situation creates advantages in financial services, it also brings various risks with it. The application of new technologies in the financial sector carries new risks and changes the existing risks inherent in the financial system. In this regard, it is critical to establish a supervising structure and regulatory rules in order to understand and prevent risks and to ensure the safe, efficient and effective functioning of the financial system. This thesis examines how financial technologies are regulated. Within this context, the emergence of the fintech concept and the sectoral development of the fintech ecosystem in Turkey and globally are studied. The study examines the regulatory approaches and legislative regulations countries adopt towards fintechs. Taking country specific cases into account, a novel approach is offered on how fintechs can be regulated and supervised in a way that meets their needs.