Big Tech's Push Into Financial Sector Raises Concerns, Says Central Bank

The RBI said concerns included operational risks, too-big-to fail issues, challenges for antitrust rules, cybersecurity and data privacy.

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 central bank said. The plans will also create governance-related challenges for regulators, the Reserve Bank of India (RBI) wrote in its bi-annual financial stability report on Thursday. Major technology firms "straddle many different lines of business with sometimes opaque overarching governance structures," it 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.