Digital and incumbent banks face growing threats from big tech and payment platforms that are evolving into full-scale financial services players. Latest forecast derived from BIS data, predicts that alternative financing will surpass $1 trillion by 2023.
April 21, 2022 | Chris Kapfer- Total alternative credit by fintech and big tech companies is still small compared to commercial bank credit, Latest forecast derived from BIS data, predicts that alternative financing will surpass $1 trillion by 2023
- Among alternative credit, big tech players dominate in China, Japan, South Korea, Kenya, Ghana, Thailand and Vietnam
- Platforms such as Grab and OVO in Asia continue to invest in new capabilities as they seek to build a deeper financial relationship with customers after record account growth in 2021, accelerated by the COVID-19 pandemic
Digital and incumbent commercial banks are facing another source of fierce market competition: big tech and payment platforms. The battle for customers is no longer limited to just e-commerce or fintech players anymore. It is now a battle to be the provider of a broad set of services including deposits, current and savings accounts.
Global tech titans have become a threat to incumbent banks, particularly in emerging markets. They wield enormous financial and market powers, with trillion-dollar capitalisation, access to information and data, and billion-strong user bases. Predictably, they are perceived as a potential source of systemic risks, capable of disrupting global markets and financial systems. China’s crackdown on big tech reverberated globally, underscoring the growing unease regulators have with big tech.
But in reality, the perceived dominant market power, in particular in retail financial services, hasn’t really materialised yet. Even the likes of global tech giants such as Google, Facebook, Paypal and Amazon, have yet to dominate areas beyond their core businesses. Amazon's credit cards and business loans have not grown beyond supporting its e-commerce business. While A...
Categories:
Keywords:Big Tech Credit, Fintech Credit, Digital Wallets, Alternative Credit, Microloans, Machine Learning
Digital and incumbent banks face growing threats from big tech and payment platforms that are evolving into full-scale financial services players. Latest forecast derived from BIS data, predicts that alternative financing will surpass $1 trillion by 2023.
April 21, 2022 | Chris Kapfer- Total alternative credit by fintech and big tech companies is still small compared to commercial bank credit, Latest forecast derived from BIS data, predicts that alternative financing will surpass $1 trillion by 2023
- Among alternative credit, big tech players dominate in China, Japan, South Korea, Kenya, Ghana, Thailand and Vietnam
- Platforms such as Grab and OVO in Asia continue to invest in new capabilities as they seek to build a deeper financial relationship with customers after record account growth in 2021, accelerated by the COVID-19 pandemic
Digital and incumbent commercial banks are facing another source of fierce market competition: big tech and payment platforms. The battle for customers is no longer limited to just e-commerce or fintech players anymore. It is now a battle to be the provider of a broad set of services including deposits, current and savings accounts.
Global tech titans have become a threat to incumbent banks, particularly in emerging markets. They wield enormous financial and market powers, with trillion-dollar capitalisation, access to information and data, and billion-strong user bases. Predictably, they are perceived as a potential source of systemic risks, capable of disrupting global markets and financial systems. China’s crackdown on big tech reverberated globally, underscoring the growing unease regulators have with big tech.
But in reality, the perceived dominant market power, in particular in retail financial services, hasn’t really materialised yet. Even the likes of global tech giants such as Google, Facebook, Paypal and Amazon, have yet to dominate areas beyond their core businesses. Amazon's credit cards and business loans have not grown beyond supporting its e-commerce business. While A...
Categories:
Keywords:Big Tech Credit, Fintech Credit, Digital Wallets, Alternative Credit, Microloans, Machine Learning
