Fintech 5.0: From Shadows to Clarity—The Future of Transparency in Financial Organizations

This chapter examines the evolution of financial technology (Fintech) from Fintech 1.0, defined by early digitization, to Fintech 5.0, where transparency emerges as the cornerstone of trust, stability, and regulatory alignment. Across successive stages, including Fintech 2.0 with the expansion of digital banking and global market liberalization, Fintech 3.0 with Artificial Intelligence (AI) and platform-based innovations, and Fintech 4.0 with AI-driven personalization and real-time services, the role of transparency has become increasingly complex and contested. As Fintech 5.0 takes shape, innovations such as Decentralized Finance (DeFi), Blockchain Technology (BT), Explainable AI (XAI), and Regulatory Technology (RegTech) solutions are transforming financial ecosystems, raising new dilemmas for accountability, fairness, and systemic stability. Using the scenario method, this chapter outlines four possible futures for Fintech organizations: the Full Transparency Model, where openness and accountability are embedded in governance; the External-Only Transparency Model, where firms comply with regulation but remain internally opaque; the Internal-Only Transparency Model, where organizations govern themselves effectively but restrict disclosure; and the No Transparency Model, where opacity fosters systemic risk and consumer distrust. These scenarios illustrate the trade-offs between innovation, compliance, and governance, while emphasizing that transparency is no longer merely a regulatory obligation but a strategic imperative and consumer-driven demand. Ultimately, Fintech 5.0 is projected to be defined by hyper-personalization, ethical AI, Environmental, Social, and Governance (ESG) integration, and quantum-secured infrastructures, with transparency serving as the defining factor for sustainable and trustworthy financial ecosystems.