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Anonymous ID: bfa6d0 Feb. 14, 2019, 5:34 p.m. No.5179158   🗄️.is 🔗kun

Big Tech's banking foray on regulators' radar

 

LONDON (Reuters) - The march of so-called Big Tech into financial services could pose a bigger threat to banks than upstart fintech specialists, warranting scrutiny for threats to financial stability, a global regulatory body said on Thursday.

 

While the report by the Financial Stability Board (FSB) stops short of recommending specific regulatory reform, it adds to widening scrutiny of Big Tech players, such as Alibaba, Google and Amazon, already under the gun from politicians over their market clout and use of consumers' data.

 

Regulators have been tracking the rise of financial technology businesses, which offer services that were previously the preserve of mainstream banks, and are checking for changes in market concentration and competition.

 

However, a broader view may be needed, said the FSB, which comprises regulators, central bankers and government officials from the Group of 20 Economies (G20).

 

"The competitive impact of Big Tech may be greater than that of fintech firms," the report said.

 

"While the financial stability implications of fintech have generally been judged to be small because of their relatively small size, this could change quickly with deeper involvement of the large technology providers."

 

Big Tech, along with other outsourcing developments such as cloud computing, may warrant vigilance of how heightened competition affects profitability, lending standards and resilience to cyber attacks, the report said.

 

Fintech firms, typically companies that offer payment services, have generally not had sufficient access to cheap money or a big enough customer base to pose a serious competitive threat to banks, the FSB said.

 

https://www.marketscreener.com/TENCENT-HOLDINGS-LTD-3045861/news/Big-Tech-s-banking-foray-on-regulators-radar-28012611/?countview=0