Are global regulators gunning for big tech?
By Rachel Witkowski
Remarks last week by a senior Federal Reserve official on the expansion of big tech firms into the financial industry have spurred new questions about the future of regulation for fintech firms. Federal Reserve Vice Chair for Supervision Randal Quarles, speaking as chair of the Financial Stability Board in Germany Thursday, cautioned that companies like Amazon, Facebook and Apple are adding both potential for greater efficiency and newfound risks as they step further into the financial system. …Karen Shaw Petrou, a managing partner at Federal Financial Analytics, said the concerns raised by Quarles, particularly about large tech firms entering the payments system, must be addressed by the stability board on a global level and by the Fed in the U.S. “The big tech platform companies are not only pressuring to get in the Fed payments system, but several are already providing core infrastructure more globally … where the FSB fears a natural oligopoly,” she said. “It is very significant payments system risk.”