Does the 'Wirecard AG' Case Address FinTech Crises?

42 Pages Posted: 6 Aug 2020 Last revised: 17 Oct 2020

See all articles by Stefan Zeranski

Stefan Zeranski

Ostfalia Hochschule für angewandte Wissenschaften - ZWIRN-Research Center

Ibrahim E. Sancak

ZWIRN-Research Center/Ostfalia University of Applied Sciences; European Corporate Governance Institute (ECGI)

Date Written: August 17, 2020


This paper analyzes the Wirecard AG case from a digital finance perspective. The relatively low pace of digital transformation of financial supervisors and the high speed of advancements in technology increase the technological gaps between supervisors and their responsibility areas and result in a new phenomenon named “asymmetric technology”. This transition period's lagged and foggy atmosphere might be very conducive to potential white-collar fraudsters who plan to abuse their TECHs in Finance advantages. Fueled by inconsistent supervisory approaches, national protectionism in reaction to trade wars, fierce competitions among national economies, and unattractive yields at money markets, potential white-collar fraudsters come up with great opportunities to abuse FinTech related companies at capital markets. Therefore, the Wirecard AG case has multiple aspects and causes, not only one. Nevertheless, many aspects of today’s financial sectors address new FinTech crises and FinTech related scandals, not only in one country but also in every economy, developing or developed ones. Therefore, governments and financial supervisors should brace for FinTech crises and financial scandals in the near future unless they meet structural reform and digital transformation requirements.

Keywords: Wirecard AG, FinTech Crisis, Financial Scandal, FinTech, RegTech, SupTech, TECHs in Finance, Asymmetric Technology, Digitalization, Structural Reform, Audit 4.0, Financial Literacy, Digital Literacy, Sustainable Finance, Prudential Supervisory Disclosure, Germany, BaFin, ESMA, ESRB, Brexit, COVID-19

JEL Classification: G18, G30, G38, H11, H12, K22, M42, M48, N20, O32, Q01

Suggested Citation

Zeranski, Stefan and Sancak, Ibrahim E., Does the 'Wirecard AG' Case Address FinTech Crises? (August 17, 2020). Available at SSRN: or

Stefan Zeranski

Ostfalia Hochschule für angewandte Wissenschaften - ZWIRN-Research Center


Ibrahim E. Sancak (Contact Author)

ZWIRN-Research Center/Ostfalia University of Applied Sciences ( email )


European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

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