The Bank of International Settlements (BIS) believes that the arrival of tech companies such as Facebook, Google and Amazon to the financial services sector poses significant risks to the traditional banking sector, according to a report shared by the institution yesterday.
The Bank for International Settlements (BIS), also known as the "Central Bank of Central Banks," believes that while the arrival of large tech companies can help to bring improvements, it will also make regulators pay special attention to them in order to prevent and fight their associated risks.
The BIS highlights the arrival of tech giants to the industry can help, for example, to make banking services available to a part of the population that had never had access to such services before.
The large user base of these companies, together with their business models, will cause rapid changes in the financial services sector.
The BIS things that "the same characteristics that bring benefits also have the potential to generate new risks and costs." This is why regulators will have to make an extra effort to assess, prevent and ultimately fight these risks.
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