To ensure ongoing vigilance, they plan to enhance the monitoring of Big Tech’s relevance in the EU financial sector through a new monitoring ‘matrix’.
European Union (EU) financial watchdogs have conducted a comprehensive review of Big Tech companies’ foray into the financial services sector across the bloc. This assessment included major global players such as Alphabet (Google’s parent company), Amazon, Meta, Alibaba, Tencent, Rakuten, Orange, Vodafone, Tesla, and Apple.
While these companies are increasingly marking their presence in Europe’s financial services, particularly in payments, e-money, and insurance services, their current impact is still considered to be on a low base.
The regulators highlighted several challenges in tracking Big Tech’s activities in the financial sector, including limited visibility over their operations, unreliable notifications of cross-border activities, and difficulties in monitoring their financial services provision. Despite these issues, the watchdogs have determined that Big Tech’s involvement does not currently pose a threat to financial stability in the EU and have stated there is no immediate need for regulatory changes concerning Big Tech’s direct provision of financial services.
The regulators still emphasised the potential risks that could arise from an increased presence of Big Tech in financial services. To address these concerns and ensure ongoing vigilance, they plan to enhance the monitoring of Big Tech’s relevance in the EU financial sector through a new monitoring ‘matrix’. This approach aims to maintain oversight of Big Tech’s expanding role in financial services while assessing the need for future regulatory adjustments.