‘Firms could become dominant players undermining banks’Plans by Big Tech to foray further into India’s financial sector pose risks for traditional banks as the tech firms have the potential to become dominant players in financial services, the Reserve Bank of India said. The plans would also create governance-related challenges for regulators, the RBI wrote in its Financial Stability Report. ‘Opaque governance’Major technology firms “straddle many different lines of business with sometimes opaque overarching governance structures,” the central bank said. The RBI said concerns included operational risks, too-big-to fail issues, challenges for antitrust rules, cybersecurity and data privacy. But it added that positive outcomes could include efficiency gains and more access to financial services.

Source: The Hindu July 02, 2021 22:47 UTC