Banks face encroachment by tech giants that could widen cyber exposure, French authority says

1 February 2019 8:57pm
The banking industry could be transformed in years ahead by the expanding foothold of Amazon, Google, Apple and Facebook in financial services, creating interconnections that might fuel cyber threats and systemic risks, said Denis Beau, the Bank of France’s first deputy governor.

The technology giants are likely to expand into banking beyond their current offerings of consumer payment services in dozens of countries and back-end cloud computing for banks and other firms, he said in Paris* this week.

“Bigtechs, more than fintechs, have the potential to fundamentally redefine financial intermediation by integrating the entire landscape of financial services into their own digital ecosystems,” Beau said. “Banks may be interfaced with bigtechs’ platforms.”

This evolution would probably benefit big banks the most, he said.

*ESSEC Business School, Centres D’Excellence; Paris; Jan. 30, 2019.