BigTechs in Finance – Realities and Prospects

Abstract

In recent years, large technology companies have become increasingly active participants in the financial services sector. Driven by motives such as expanding economies of scope and deepening customer engagement, BigTechs are no longer satisfied with offering convenient payment applications alone. They are increasingly venturing into products and services that, until recently, were considered the exclusive domain of traditional financial intermediaries. Their undeniable advantages - including high market capitalization, the global nature of their business, and access to vast amounts of data — have understandably raised concerns among banking managers. At the same time, the advance of BigTechs into the financial industry comes with several challenges, both for the companies themselves and for the competent authorities, who are increasingly placing them within the scope of regulatory scrutiny.