The IMF is worried that big tech could make the financial system less stable
Quartz | Mon, Jun 10, 2019
by John Detrixhe
The International Monetary Fund thinks big technology companies are going to dig deeper into the financial sector—a shift that could modernize things like payments and loans for millions of people. But it also raises concerns about data privacy and the concentration of power among a small number of mega-corporations.
In recent years, there’s been widespread speculation of a financial-sector invasion by the likes of Amazon and Facebook. However, many top executives now think the fortress of regulation surrounding big banks will successfully repel the tech giants. Apple’s credit-card partnership with Goldman Sachs is sometimes offered as an example: the iPhone maker’s payments offering (Apple Pay) is relatively light-touch in terms of regulatory scrutiny, while Goldman Sachs, the Wall Street stalwart, handles the heavy financial lifting.