Watchdog eyes Big Tech push into UK financial services sector
The presence of Big Tech in the UK’s financial services market has caught the eyes of the regulator.
The Financial Conduct Authority (FCA) is seeking views on the possible competition harms and benefits of the Big Tech push into financial services sectors and the infrastructure on which it is based.
Sheldon Mills, executive director of consumers and competition, said: “In recent years, Big Tech’s entry into financial services, in the UK and elsewhere, has demonstrated their potential to disrupt established markets, drive innovation and reduce costs for consumers.
“Across the world, we’ve seen the capability of Big Tech to offer transformative new products in areas such as payments, deposits and consumer credit.”
No regulatory changes are being proposed at this stage, the FCA assured.
Chris Woolard, financial services regulation leader for Europe, Middle East, India and Africa at EY, called the move by the FCA “no surprise” given Big Tech’s role in the building blocks of the finserv industry.
“Not only does Big Tech and FinTech provide a major boost to growth and innovation within the financial services sector, it also increasingly raises new challenge,” he added.