On June 23, 2019, the Bank for International Settlements (the
"BIS"), the international institution of
central banks whose mission is to promote global financial
cooperation, published its Annual Economic Report 2019 (the
"Report") featuring a chapter on the opportunities
and risks of large multinational technology ("Big
Tech") companies' inroads into financial
services. The Report examines the potential benefits of Big Tech
presence in financial services, as well as the risks and regulatory
implications it entails.
Big Tech's Expansion Into Financial Services
The BIS observes that the activities of Big Tech companies in
finance are a subset of broader financial technologies
("Fintech") innovation. While Fintech
companies are set up to operate primarily in financial services,
Big Tech companies offer financial services as part of a large set
of activities. The Report notes that their entry into finance
reflects strong complementarities between financial services
