Author(s)

Yanxin Wang ¹

Affiliation(s)

¹ Henan University of Economics and Law, Zhengzhou, 450000, Henan, China

Corresponding Author

Yanxin Wang

ABSTRACT

The digital economy is profoundly reshaping the operational logic and service form of the financial industry. This article focuses on financial innovation under the background of digital economy and discusses its development model and risk management mechanism. The research first clarifies the mechanism of digital economy driving financial innovation, and analyzes the operation logic of three main development models: technology-driven, scene fusion and platform ecology. On this basis, it reveals the characteristics of concealment, instantaneity and relevance of financial innovation risk, and depicts the network path of cross-layer transmission of risk from technology layer to business layer and market layer. In view of the above-mentioned risk characteristics, a risk management framework of overall development and safety is constructed, and some countermeasures are put forward, such as implementing penetrating supervision to eliminate regulatory arbitrage, deepening the application of regulatory technology to improve monitoring efficiency, and improving the financial consumer protection mechanism to alleviate information asymmetry.

KEYWORDS

Digital economy; Financial innovation; Risk characteristics; Transmission mechanism; Risk management

CITE THIS PAPER

Yanxin Wang. Financial Innovation Development Models and Risk Governance Mechanisms in the Context of the Digital Economy. Financial Engineering and Risk Management (2026). Vol. 9, No. 1, 111-116. DOI: http://dx.doi.org/10.23977/ferm.2026.090111.

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