EMERGING FRONTIERS IN FINANCIAL TECHNOLOGY: REGTECH, AI-DRIVEN LENDING, BUY NOW PAY LATER, AND CENTRAL BANK DIGITAL CURRENCIES

Abstract

The financial services industry is undergoing a second wave of technological disruption, following the initial wave that introduced mobile payments, digital wallets, and peer-to-peer lending. This second wave is characterized by the deep integration of regulatory technology (RegTech), artificial intelligence in credit decisioning, the rapid proliferation of Buy Now Pay Later (BNPL) consumer financing models, and the experimental and imminent rollout of Central Bank Digital Currencies (CBDCs) by monetary authorities worldwide. This article examines these four interconnected domains through the lens of innovation theory, financial inclusion imperatives, and systemic risk governance. Drawing on current industry data, academic literature, and real-world case studies from both developed and emerging markets — including Uzbekistan's evolving digital finance ecosystem — this study argues that the convergence of regulatory automation, AI-powered lending infrastructure, alternative consumer credit, and sovereign digital money represents a structural reconfiguration of the global financial architecture. The findings emphasize that sustainable progress in these domains requires coordinated policy frameworks, robust cybersecurity infrastructure, and deliberate strategies for equitable access.