“A New Era of Financial Transparency: Combating Corruption Perception with FinTech.”

Abstract

This report is titled “A New Era of Financial Transparency: Combating Corruption Perception with FinTech” – A Study on FinTech is an outcome of BBA thesis program. The objective of this paper is to investigate how FinTech adoption influences the Corruption Perceptions Index (CPI) across countries. This paper's goal is to examine the ways in which FinTech adoption affects the Corruption Perceptions Index (CPI) in various nations. It seeks to determine if digital financial systems promote national reputations, decrease illicit financial activity, and increase transparency. Through cleaner financial conditions, the study also aims to investigate the indirect impact of FinTech on luring foreign direct investment (FDI). Lastly, it assesses the wider institutional advantages of FinTech adoption, highlighting how it promotes long-term financial security and accountability. This study investigates how FinTech transforms financial systems, improves openness, and reduces corruption. FinTech adoption boosts CPI, institutional legitimacy, and FDI by using digital financial tools. FinTech can enhance accountability and prevent illegal activity, but misuse can damage public trust and national reputations. FinTech adoption and corruption perceptions are examined using a two-step system GMM model on a panel dataset of 52 nations from 2017–2023. FinTech adoption is positively correlated with CPI scores, indicating reduced corruption and improved transparency. The findings also show that cleaner financial environments boost investor confidence and FDI. Robustness tests confirm these results across specifications. The report emphasises that these outcomes are indications of institutional transition, not ends. FinTech adoption heralds a new era of transparency and accountability by improving financial clarity, regulation, and worldwide confidence. When used appropriately, FinTech enhances efficiency and redefines global anti-corruption efforts, setting the groundwork for sustainable growth, better reputations, and long-term financial security.