The finance sector welcomes innovation, but there are obstacles to overcome. Cybersecurity is one of the main issues. Financial institutions are more vulnerable to cyberattacks as a result of greater reliance on digital infrastructure. Strong cybersecurity measures are necessary to protect consumer data, prevent illegal access, and ensure data privacy. Compliance with regulations is another difficulty. As financial institutions must negotiate changing regulatory frameworks to assure compliance while fostering innovation, finding a balance between innovation and regulatory obligations can be challenging.