Big technology firms such as Amazon, Facebook, Twitter, and Google “may pose risks to financial stability” if they get more heavily involved in providing financial services, according to the Financial Stability Board (FSB), the organization tasked to monitor how the world’s largest banks operate.
The FSB believes that—due to their dominant positions, the amount of customer data they hold, and the revenues and resources at their disposal—these firms could quickly gain an advantage in providing financial services, particularly if they use their clout to leverage their networks of third parties or partner with smaller players to win market share. They could also destabilize established players by denting their profitability.
