02.15.19
Big Tech Disrupters May Pose Risk to Financial Stability, Warns Global Regulator
by: Caroline Binham
The Financial Stability Board (FSB) said that large, established technology firms could “materially alter” financial services much more than specialist financial-technology companies, and that incumbents may have to take bigger risks to keep up. The FSB is concerned that the scale of these large companies means that their presence may reduce competition within the financial sector in the long-run. The FSB is also worried that the companies provide outsourcing services, such as the cloud, to an increasing number of financial companies, increasing systemic risk should one large service provider collapse.
Read the full article on Financial Times