Credit risk in the fintech era

Fintech makes it possible for us to use banking apps and more of us than ever are using digital banking services because of the pandemic.

A recent article in Global IIA’s magazine Internal Auditor highlighted the unique challenges to internal auditors around data, fraud, platforms and credit risk that is presented by financial technology.

Imperatives for credit risk management have evolved in the fintech era, as has internal audit’s role in the Three Lines Model. This mandates internal auditors to take on a more holistic approach towards fintech and credit risk management to assess risks arising in this new business ecosystem.

Reading this was a reminder of one of our own blogs about fintech that also explores a range of risks for internal auditors to think about.

Further reading

If you would like to explore credit risk further here is some of the guidance that is available for members of the Institute here in the UK and Ireland.

IPPF Supplemental Guidance – Auditing credit risk management

Retail credit risk – considerations for internal audit

Wholesale credit risk – considerations for internal audit