All about Apple Google Amazon payments business financial stability threat - The AEB warns that the greater weight of Apple, Google or Amazon in the payments business may be a threat to ”financial stability".
Increased technology companies are entering the payments business.
And this can be a problem for banking, even for the stability of the financial system, as the president of a patronal bancaria (AEB) Alejandra Kindelán has warned.
"We will tend to lose weight in the payments sector, and we will also lose our basic capacity," said Kindelán at the XXXIX Seminar organized by the APIE, BBVA and the UIMA with the title Sustainability and digitalization: the levers of recovery.
Apple Google Amazon payments business financial stability threat
The president of the banking employers' association has asked herself that if banking loses weight in one of the most profitable areas of the business, "who is going to finance the consumer economy? “Because this is the mission of banking, and it is not in the DNA of technology companies.
"This is also a question of financial stability," Kindelán warned.
Apple announced a few days ago its greatest weight in the payments business. One more step for the big tech companies in entering the financial field, which adds to the fintech companies that are already also operating in activities that were previously the preserve of banks.
These are activities that leave more business margin and that these technologies can carry out without the need for a banking license.
Apple Google Amazon payments business financial stability threat statement
"The competition from non-banks (where it includes big tech and fintech) has broken down the barriers to entry in our sector. Non-banks represent 35% of the value of the financial industry, whereas 10 years ago they were 10%," said Kindelán.
"Our banks are not afraid of competition," the president stressed, but she has once again endorsed a demand that has been repeated in the sector for some time: same activity, same rules.
Kindelán has reiterated that the competition between banks and inexperienced players must be on an equal footing. "Banks are subject to very demanding and also very expensive regulation," he added.
Apple Google Amazon payments business financial stability threat facts
In this sense, he has also referred to an asymmetry in regulation that affects, for example, payments. Since there is a regulation for as many financial companies, as technology companies, technology companies.
The president of the banking employers' association has also pointed out that banking is already in all innovative environments and that this also affects crypto assets. But he has pointed out that the key is to ask what kind of protection is necessary to
"Our clients demand these types of services from us, but we demand a coordinated and sophisticated regulatory response," he said. In this regard, he stressed that the future approval of the MIKA regulation will serve to bring order to the sector.
