Technological giants such as Amazon, Google, Facebook and Alibaba have an advantage over traditional financial technology companies like fintech. Because they have unlimited user information and capital that allows them to compete strongly and Financial Stability Board.
In the analysis Fintech and the structure of the financial services market, the Swiss based agency explained that large companies can provide financial services as part of their 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”, explains the document of the world body.
The Financial Stability Board emphasizes that Fintech companies can provide a complementary service to those provided by existing institutions and generate greater competition.
The international financial entity emphasizes in its analysis that although the implications of the Fintech sector for financial stability are limited. This could be changed by the large technology providers.