Description

Fintech in Bangladesh has changed how financial services work and made digital payments, mobile banking, and online lending available to millions at an unprecedented rate. However, this quick expansion has overtaken the creation of a strong cybersecurity legislative framework, which puts customers at risk of data breaches, financial fraud, and identity theft. The ICT Act of 2006, which remains partially in force, and the now repealed Cyber Security Act of 2023 were examples of legislation that dealt with cybercrime. However, they did not have a complete legal framework for making fintech companies responsible for data breaches. In light of these legislative deficiencies and emerging challenges, there is an urgent need for comprehensive legal reforms that will not only address existing gaps but also anticipate emerging obstacles in fintech governance. Hence, this study examines prevailing local laws, court cases, and international legal instruments pertaining to data protection, cybersecurity and consumers’ privacy. It further points out problems with the existing domestic legal regime, stressing the need for more explicit rules around data privacy, fintech compliance, and stronger ways to safeguard consumers. In addition, this article suggests a ‘Cybersecurity Liability Directive’ that would require encryption standards, strict compliance monitoring, and create a ‘Data Protection Authority’ with the capacity to investigate and enforce. Suggested legal reforms within this article also align with the Cyber Security Ordinance 2025. Fixing legal gaps that have been identified in this article will help Bangladesh to make fintech innovation work better for consumers, encourage digital financial inclusion, and lower the dangers of cybercrime.

Keywords: Fintech Regulation, Consumer Protection, Cybersecurity, Financial Technology Accountability, Data Protection Authority.