Which aspect of Fin Tech is characterized as presenting vulnerabilities?

The correct choice highlights how new technologies in the FinTech sector often introduce potential vulnerabilities. As financial services increasingly leverage innovative technology—such as blockchain, artificial intelligence, and mobile applications—these new tools also encounter unique risks that may not have been present in traditional banking systems.

While established financial institutions have developed robust security measures over time, the integration of new technologies can create unforeseen challenges such as cybersecurity threats, data breaches, and regulatory compliance issues. Moreover, the fast-paced evolution of technology means that vulnerabilities can emerge rapidly, often before they can be adequately addressed, leading to potential risks for both consumers and institutions.

On the other hand, stable technologies and established banking practices typically have undergone extensive scrutiny and have developed strong security protocols to mitigate vulnerabilities. Likewise, in-person transactions are generally regarded as involving fewer digital risks, because they are less susceptible to the kinds of cybersecurity issues that can affect technology-based interactions. Thus, the specific emphasis on new technologies and their inherent vulnerabilities recognizes the pressing need for vigilance and proactive measures in the ever-evolving FinTech landscape.