Corporate Law Challenges of FinTech Adoption in Developing Countries Implications for Corporate Governance and Regulatory Compliance

HRMARS - The rapid expansion of Financial Technology (FinTech) has transformed financial services in developing economies, yet regulatory and governance systems often struggle to adapt to technological innovation. This study examines the impact of regulatory challenges and corporate governance constraints on FinTech adoption effectiveness in South Asian developing economies. Using a quantitative explanatory design, data were collected from 250 professionals involved in FinTech, compliance, and governance roles. SPSS-based regression and SmartPLS structural equation modeling were employed to test the proposed relationships. The findings reveal that both regulatory challenges (? = ?0.321, p < 0.001) and corporate governance challenges (? = ?0.412, p < 0.001) have significant negative effects on FinTech adoption effectiveness, with governance challenges exerting a stronger influence. The results indicate that regulatory uncertainty, compliance burdens, weak oversight structures, and limited internal controls reduce organizations’ ability to implement digital financial innovations effectively. The study highlights the interconnected role of regulation and governance in shaping sustainable FinTech ecosystems and emphasizes the need for adaptive regulatory policies and stronger governance mechanisms. These findings contribute to the literature on digital financial transformation and offer practical insights for policymakers and industry stakeholders in developing economies.