Big tech’s financial services play poses systemic concerns like overleverage: RBI Governor

RBI Governor Shaktikanta Das on Friday said the entry of big tech firms into the financial sector poses systemic concerns like overleveraging at the borrowers’ ends.

The entry of firms like Google, Amazon and Facebook (Meta), referred as big tech companies, also poses question marks around competition and data privacy.

“They (big tech) carry risks, which need to be properly assessed and dealt with,” Das said while speaking at Modern BFSI Summit 2022 organised by Financial Express.

Such companies can include entities in e-commerce, search engines and social media platforms that have started to offer financial services in a “big way” on their own or through tie-ups, he said, adding this is leading to the use of new methodologies in credit assessment.