BIS Head: Tech Giants Pose “Existential Threat” to Banks

Head of the Bank for International Settlements, Agustín Carstens, said last Tuesday that internet giants are now posing an existential threat to traditional financial institutions, since the massive amount of data that companies like Google gather give them a big advantage.

 

Carstens, who was the former governor of Mexico’s central bank, said that tech giants will have better information on customers’ spending and lifestyles, making it easier for them to judge the risks of providing a loan.

 

Carstens emphasized that the models of companies like Alibaba or Amazon may be different, but what is universal is the exploitation of information.

 

 

Source: Reuters