Over the past deca­de, big techs and fintechs began to pro­vi­de a ran­ge of finan­cial ser­vices to con­su­mers, initi­al­ly out­side the con­fi­nes of the high­ly regu­la­ted ban­king indus­try. The­se ser­vices star­ted with pay­ments, but expan­ded to encom­pass con­su­mer len­ding, insu­rance and wealth manage­ment. In their pro­vi­si­on of finan­cial ser­vices, some big techs and fintechs com­pe­te direct­ly with banks, while others work in part­ner­ship with them through various arran­ge­ments, to ful­fil their cus­to­mers’ ban­king needs. From the per­spec­ti­ve of big techs and fintechs, the main bene­fit of pro­vi­ding bank-like finan­cial ser­vices wit­hout a ban­king licence is the limi­t­ed regu­la­to­ry over­sight, which allows them to focus on enhan­cing their tech­no­lo­gy, impro­ving pro­duct offe­rings and enri­ching the cus­to­mer experience. …

Quel­le /​ Link: Gate­kee­ping the gate­kee­pers: when big techs and fintechs own banks – bene­fits, risks and poli­cy options