The global financial system is undergoing a profound transformation, driven by the convergence of finance and digital technology. In the wake of the 2008 financial crisis, public distrust in traditional financial institutions, coupled with rapid technological advancements, created fertile ground for the emergence of financial technology (fintech). Enabled by innovations such as cloud computing, big data analytics, blockchain and mobile platforms, fintech firms have disrupted conventional financial intermediation by offering faster, cheaper and more inclusive services. This digital shift has increased competition and efficiency in financial markets while also extended financial services to previously underserved populations, particularly in emerging economies. According to the World Bank and Bank for International Settlements, financial inclusion, once a developmental aspiration, has now become a commercially viable goal through fintech solutions. The growth of peer-to-peer (P2P) lending, digital wallets and decentralised finance illustrates this broader trend.
As fintech matures, it is reshaping not only market structures but also the regulatory and policy landscape. The borderless nature of digital finance presents unprecedented challenges for regulators, who must now contend with novel risks related to cybersecurity, data privacy, financial stability and market integrity. At the same time, the rise of BigTech in finance raises questions about competition, consumer protection and the potential creation of new systemic risks. Central banks and financial authorities around the world are responding with varied strategies, from regulatory sandboxes and innovation hubs to new digital asset frameworks. International financial regulation organisations have also emphasised the importance of cross-border coordination to manage these risks. As fintech continues to reshape finance, meaningful engagement with its development must consider not just technical mechanisms, but also its governance challenges, market implications and broader societal outcomes.
Against this background, Dr. Lerong Lu’s book, Global Fintech Revolution: Practice, Policy, and Regulation, is published at a critical moment in the evolution of fintech, offering a timely and comprehensive investigation into the global fintech ecosystem. Rather than limiting its scope to a specific jurisdiction, the book presents a truly international and interdisciplinary analysis of how fintech innovations such as digital currencies, blockchain, artificial intelligence (AI) and platform-based finance are reshaping the global financial landscape. It also explores the regulatory, institutional and policy responses being developed across major jurisdictions. Since its publication, the book has attracted wide readership across Asia, Europe, the Americas and many other regions of the world. Its global significance stems from the way it captures the tensions between innovation and regulation, inclusion and risk, and public and private interests in the fintech. The book is well timed and highly policy-relevant, contributing to ongoing global conversations about financial stability, consumer protection and technological governance.
Global Fintech Revolution: Practice, Policy, and Regulation centres on the fundamental nature of fintech and organises its research into three main parts. First, by explaining the concept of fintech, it reveals the unchanging financial essence behind fintech innovations and the role of technological advancement within financial markets. Second, it defines fintech as a complex, dynamic and multidimensional ecosystem, and illustrates its characteristics through the perspectives of international fintech hubs, regulatory authorities and fintech companies. Third, the book offers concrete case studies, examining the application of fintech within different systems, with a focus on banking, online lending markets and monetary payment systems. With in-depth and international cases studies on fintech, the book sets out to address multiple audiences with the goal of fostering a deeper and more integrated understanding of fintech’s challenges and opportunities.
Chapter 1 of the book introduces its background, objectives, analytical framework and the themes of each chapter. In the background section, the author adopts a historical perspective to provide readers with a comprehensive picture of the fintech revolution and its broader implications. The discussion begins with the impact of information technology on daily life and gradually shifts to its influence on the financial sector, ultimately leading to an exploration of the defining features of fintech – namely, the interplay between finance and technology. The development of fintech has created a win-win situation for both financial institutions and consumers. The book points out that fintech applications such as P2P lending, cryptocurrencies and decentralised finance have contributed to the emergence of a more equitable, democratic and inclusive global financial system. Nonetheless, fintech also introduces new financial risks, serving as a wake-up call for regulators. The policies and standards governing fintech regulation play a critical role in shaping the course of this transformation. Following the background discussion, the chapter presents the objectives and analytical structure of this book through a clear diagram. The well-organised framework examines fintech applications and policy developments from the perspectives of consumers, businesses, regulators and society. Thereafter, the chapter overviews signal that this book is set to become a widely appreciated work on fintech, combining thorough detailed policy analysis and vivid case studies to engage a broad readership.
Chapter 2 presents an insightful exploration of fintech’s conceptual foundations. The author clearly defines the boundaries of what fintech includes in terms of institutions, services and activities, laying essential groundwork for later discussions on applications and regulation. By breaking down the term into its components, finance and technology, the chapter effectively captures the dual nature of fintech. It illustrates how finance serves as a mechanism for capital allocation, while technology drives innovation through tools like AI, blockchain, cloud computing, (big) data and e-commerce (ABCDE). The chapter further outlines key traits that distinguish fintech from traditional finance, including automation, scalability, disintermediation and customer focus. It persuasively argues that fintech contributes to a more efficient, inclusive and sustainable financial system. Finally, Chapter 2 acknowledges key economic and social values that fintech innovation has successfully brought, arguing that fintech has transformative potential in today’s global economy.
Chapters 3 and 4 provide an in-depth and engaging examination of the fintech ecosystem. The author moves beyond individual technologies to explore the broader environment in which fintech innovation occurs. Chapter 3 focuses on the physical and institutional venues where fintech thrives. It offers a comparative analysis of global fintech hubs across six continents, examining the advantages, distinctive features and regulatory environments that make cities like San Francisco, London, Singapore and Paris successful in fostering innovation. The chapter also presents a clear overview of regulatory strategies, including tools like regulatory sandboxes and regulatory technology, while discussing how regulators manage competing priorities such as innovation, consumer protection and financial stability. By comparing diverse regulatory approaches and hub characteristics, Chapter 3 helps readers appreciate the varying dynamics and policy environments that shape fintech’s development across different jurisdictions.
Chapter 4 shifts attention to the fintech corporations, including start-ups, unicorns and financial holding companies. It also covers the growing influence of BigTech firms like Apple, Amazon and Tencent, which are increasingly active in areas such as payments, lending and digital currencies. The book thoughtfully addresses how new technologies such as the Metaverse, Web 3.0 and non-fungible tokens (NFTs) are reshaping the finance. It evaluates both the potential and the risks associated with these developments and explores corporate governance challenges such as dual-class share structures. The author also highlights the diverse funding paths available to fintech companies, from private equity to special-purpose acquisition companies. Through the analysis, this chapter presents a nuanced understanding of how technology innovation and financial backing interact in shaping the global fintech revolution. This topic is particularly important for readers interested in how emerging business models challenge traditional financial institutions and governance frameworks.
From Chapter 5 onwards, Global Fintech Revolution: Practice, Policy, and Regulation offers well-crafted and insightful case studies that apply the author’s analysis model to explore fintech innovations in key sectors. Chapter 5 focuses on digital banks which emerged rapidly following the 2007–08 financial crisis. Banks such as Monzo, Revolut and WeBank are presented as agile and technology-driven alternatives to traditional institutions, operating without legacy systems and offering streamlined, app-based services. The chapter not only evaluates the competitive advantages of these banks, especially in serving retail clients and small and medium-sized enterprises (SMEs), but also considers structural challenges in the industry, including market concentration and the “too big to fail” phenomenon. Notably, the chapter reflects on how these new entities interact with existing regulatory regimes, raising key questions around deposit insurance, capital adequacy, cybersecurity and data protection. This analysis provides valuable insights into both the opportunities and vulnerabilities posed by digital banking.
Chapter 6 delivers a timely and comprehensive review of online P2P lending as an alternative financing method for small businesses and individual borrowers. It highlights the increasing role of P2P platforms in filling funding gaps left by traditional banks, especially in economies where SMEs face systemic financing challenges. By comparing online lending ecosystems in the UK, the US and China, the chapter demonstrates the global significance and varying levels of maturity in these markets. It thoughtfully examines the benefits of disintermediation, such as faster processing times, greater transparency and improved access to diverse funding sources. At the same time, it critically engages with the regulatory frameworks needed to oversee this rapidly growing sector across the world. The book primarily analyses the regulatory policies of the UK, including industry self-regulation and the FCA’s regulation, while also briefly introducing the policies of the US and China. The chapter’s comparative and policy-oriented approach strengthens its practical value, making it a useful resource for both academics and policy-makers.
Chapter 7 investigates the far-reaching effects of fintech on monetary and payment systems. The book presents a compelling narrative on the evolution of digital money, dividing it into three forms: blockchain-based cryptocurrencies, stablecoins and central bank digital currencies (CBDC). This chapter not only critically examines the risks associated with cryptocurrencies and stablecoins, such anti-money laundering (AML) dilemma, legal uncertainty and value volatility, but also explores the operational mechanisms, design features and the resulting global currency competition triggered by CBDC. Next, the author incorporates popular mobile payment technologies like near-field communication technology and quick response codes, offering a global perspective on the shift towards cashless economies. The chapter is particularly effective in highlighting the motivations behind both public and private initiatives to reshape monetary infrastructure. Importantly, the author argues that financial regulators should take a more proactive stance in guiding these innovations, rather than reacting after the fact. This case study underscores the importance of forward-looking policy in managing the rapidly evolving landscape of digital finance.
The final chapter synthesises the book’s main insights. It offers a comprehensive and critical reflection on the fintech ecosystem, highlighting its wide-ranging economic and social impacts. This chapter emphasises fintech’s transformative potential in reshaping financial systems and broadening access to financial services. At the same time, it draws attention to the pressing need for thoughtful legal, regulatory and ethical frameworks to guide the sector’s sustainable development. As a conclusion, it reinforces the core messages of the book and provides a forward-looking perspective on the future of fintech.
Global Fintech Revolution: Practice, Policy, and Regulation is an indispensable resource for scholars, policy-makers and practitioners engaged in the fintech field. Through its clear structure, practical focus and global perspective, the book successfully captures the key aspects of the global fintech revolution, including its past developments and future direction. It balances theoretical analysis with practical insights and combines historical context, regulatory critique and forward-looking evaluations. By integrating conceptual discussions, ecosystem analyses and detailed case studies on banking, lending and payments, the book offers both breadth and depth in its examination of how fintech is reshaping global financial systems. Its focus on regulatory responses, governance challenges and ethical considerations gives the book broad theoretical and practical value across different countries and sectors. As fintech has undergone a worldwide revolution, this book serves not only as a timely academic contribution but also as a guiding framework for understanding the future of digital finance.
