Ethical FinTech

This chapter examines an important social dimension, namely, ethics in finance. The application of new financial technologies generates new risks as well as amplifying those risks, which already exist and are well recognized by financial institutions. As a result, it becomes essential to look at the application of innovative solutions in the banking sector not only from the perspective of common risks, such as operational, security, model or legal and regulatory risks, but also those that can be attributed to the category of ethics and new technologies. This chapter aims to justify the need to create a new catalogue of ethical principles for the use of new technologies in the financial sector, as well as to present specific solutions that could be further clarified by EU regulators in the future. This chapter emphasizes that a lack of an ethical approach in the marketing of financial products and services, as well as in the use of new technologies, can generate several risks for financial institutions, customers, regulators and supervisors and, in general, the entire financial system and economy. Therefore, the issue of ethics in the use of new technologies from the perspective of the financial sector should be a main subject of interest and involvement not only in the institutions themselves but also in society.