Big tech in finance and new challenges for public policy

Keynote address by Mr Agustín Carstens, General Manager of the BIS, at the FT Banking Summit, London, 4 December 2018.

Abstract

Large technology companies with established user networks ("big tech") are challenging traditional finance. Having started with payments, in some markets such companies have been expanding into the provision of credit, insurance and even wealth management. They have been doing so either directly or in cooperation with incumbent financial institutions. This raises a host of questions around competition, financial inclusion, data protection and financial stability. Will this growth lead to a more diverse financial system or to new forms of concentration? Is the expansion of big tech driven by efficiency gains, or by arbitrage of the current regulatory system? And how should public policy adapt to these developments in order to protect client data and help sustain strong and balanced growth?