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A Data Analytics Framework for Financial Risk Management in FinTech Companies
| International Journal of Computer Applications |
| Foundation of Computer Science (FCS), NY, USA |
| Volume 187 - Number 46 |
| Year of Publication: 2025 |
| Authors: Atharva Dongare, Himani Purohit, Jignesh Patel, Swati Joshi |
10.5120/ijca2025925771
|
Atharva Dongare, Himani Purohit, Jignesh Patel, Swati Joshi . A Data Analytics Framework for Financial Risk Management in FinTech Companies. International Journal of Computer Applications. 187, 46 ( Oct 2025), 19-25. DOI=10.5120/ijca2025925771
Abstract
The integration of data analytics into financial risk management has significantly transformed the operational landscape of FinTech enterprises. A critical development in recent years has been the adoption of advanced analytical methodologies, including machine learning, artificial intelligence, and big data processing, to enhance risk identification and mitigation. This shift represents a fundamental departure from traditional, retrospective risk assessment models towards predictive and adaptive frameworks. By leveraging these technologies, FinTech companies are now able to monitor financial activities in real-time, detect emerging risk patterns, and develop proactive strategies to minimize exposure. The regulatory and managerial responsibilities associated with risk management no longer rest solely with the financial service provider. Instead, an ecosystem of stakeholders—including regulators, investors, technology vendors, and third-party risk assessment organizations—contributes to ensuring financial stability. This collaborative orientation underscores the necessity of robust governance frameworks that are reinforced by analytics-driven insights. In particular, data analytics plays a critical role in addressing concerns such as fraud detection, credit scoring accuracy, liquidity risks, and compliance with regulatory standards. Furthermore, the application of data analytics in risk management is not confined to a single domain of financial services. Sectors such as digital lending, payment gateways, insurance technology, and wealth management platforms have actively integrated analytical tools into their operations. These initiatives reflect an industry-wide recognition that sustainable growth and resilience in FinTech are intrinsically linked to the effective utilization of data analytics. Consequently, the emphasis has shifted towards building scalable, transparent, and intelligent risk management systems capable of supporting the long-term stability of digital financial ecosystems.
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