The head of Britain's financial regulator says he plans to investigate how access to large amounts of data by big tech companies can lead to better financial products and more choice for consumers. Ta.
Nikhil Rati, chief executive of the Financial Conduct Authority (FCA), said the watchdog wanted to examine how the data collected by tech companies could be useful to consumers and financial firms.
Speaking at an event organized by the Digital Regulatory Cooperation Forum (DRCF), a coalition of the UK's major regulators, Rati said the FCA's analysis shows how tech companies' data could be useful for financial services. The FCA said it would consider the following if it found that: Facilitate data sharing between technology and financial companies through systems such as open banking.
The FCA's chief executive will work with the Competition and Markets Authority (CMA) to develop proposals on digital and data conduct to encourage data sharing where potential risks and harms from non-sharing are identified. He said he would also consider doing so. Possible.
“The growing rise of Big Tech in financial services is already making consumers' lives easier, but it remains unclear how valuable data will become in financial markets,” he said.
“That’s why we want to work with big tech companies to consider how their data can best serve financial firms and their customers in the future, ensuring competition evolves effectively.”
He added that it is important to prevent a small number of technology companies from consolidating a powerful position in the sector, and that regulators in various industries around the world are currently addressing this issue.
“Big Tech is now an integral part of financial services supply chains, and the combination of cloud, data, and AI risks strengthening their power in partnering with companies across financial services and other sectors. Yes,” Rati said.
“We need more industry players to feel like they have a role to play in the data space. Secure data sharing benefits businesses, markets and consumers. It is critical to open banking and open finance.”