The UK’s Financial Conduct Authority (FCA) is set to intensify its investigations into the competitive effects of Big Tech companies within financial services.
The FCA’s plans regarding Big Tech are outlined in a feedback statement related to its November call for input on data sharing between Big Tech and financial services firms. At present, while Big Tech firms can access financial services data through Open Banking, they are not mandated to share their data with financial institutions.
Nikhil Rathi, the FCA’s chief executive, stated, “Big Tech’s growing presence in financial services has already simplified processes for consumers, but it remains uncertain how valuable their data will become in financial markets.” He emphasized the importance of collaborating with Big Tech to explore how their data could benefit financial firms and their customers in the future, ensuring that competition progresses effectively.
Should the FCA’s analysis reveal that Big Tech data holds significant value for financial services, it will seek to encourage greater data sharing between Big Tech and financial firms through its Open Banking and broader Open Finance initiatives. Conversely, if potential risks or harms from insufficient data sharing are identified, the FCA plans to formulate proposals for the Competition and Markets Authority (CMA) to consider, in light of their forthcoming authority to regulate the digital and data practices of designated firms through the Digital Markets, Competition and Consumers (DMCC) Bill.