BigTech banking could be ‘game changer’ - BIS

The gradual shift of BigTech giants into financial services has the potential to be a “game changing development” for the industry, according to a new report from the Bank for International Settlements (BIS).

The Basel-based institution, which sets out policy and banking services for the world’s central banks, conducted a study into the entry of big technology companies into financial services, which found that regions with “less stringent” banking regulation - including China and Latin America - are ahead of Europe and the United States when it comes to credit services.

The report focused on the growth of China’s Ant Financial, the payments and finance arm of e-commerce giant Alibaba, and Argentina’s online marketplace Mercado Libre, which has launched its own financial services offering.

The analysis, based on data obtained from BigTech firms in these markets, sheds light on key questions about “this potentially game-changing development in the world of finance”.

The report comes after Apple announced plans to launch its own credit card service in addition to the Apple Pay digital wallet.

The BIS also described the trend for BigTech or e-commerce firms to begin their financial services offering with payments and then progress into more complex products.

“BigTech firms often start with payments,” the report explained. “Thereafter, some expand into the provision of credit, insurance, and savings and investment products, either directly or in cooperation with financial institution partners.”

However, while the BIS acknowledged that BigTech presents challenges for the traditional banking and regulatory model, it concluded that there was more time was needed to examine the wider impact as consumers adopt BigTech financial services in greater numbers.

“It is too early to judge the extent of BigTech's eventual advance into the provision of financial services,” the report stated. “However, the early evidence allows us to pose pertinent questions that bear on their impact on financial stability and overall economic welfare.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.