Technological giants such as Amazon, Google, Facebook and Alibaba have an advantage over traditional financial technology companies (fintech) by having unlimited user information and capital, which allows them to compete strongly, the Financial Stability Board (FSB) said, which stands for its acronym in English.
In the analysis “FinTech and the structure of the market in financial services,” the agency explained that large companies can provide financial services as part of its product range.
“BigTech companies can have immediate access to cutting-edge technologies to process big data, including cloud computing, artificial intelligence and machine learning. Therefore, they can enjoy some competitive advantages over financial services companies, “the document explains.
The agency emphasizes that fintech can provide a complementary service to those provided by existing institutions and generate greater competition.
The FSB stresses that while the fintech sector’s implications for financial stability are limited, this could be changed by large technology providers.