Big Tech in Financial Services [Updated July 29, 2022]   [open pdf - 2MB]

From the Summary: "For the past decade or so, 'Big Tech'--which hereinafter refers to the large technology companies Amazon, Apple, Google, and Facebook (now Meta Platforms), unless otherwise noted--has been offering a variety of financial services products to retail customers. Big Tech uses advanced data analysis and novel partnerships with traditional financial institutions to redefine financial services. The financial service with unanimous participation among Big Tech companies is payments. In 2021, more than 100 million consumers used mobile payment apps, including those provided by Big Tech. Other offerings include credit cards and lines of credit, value storage, and stablecoin wallets. In addition to these direct offerings of financial services, Big Tech has other significant, albeit less direct, ties to finance. Amazon, Microsoft, and Google account for roughly twothirds of cloud service in the United States and count banks and other financial institutions as major customers. Big Tech relies on partnerships with traditional financial institutions in some capacity to deliver nearly all of these services. The variation in such relationships accounts for much of the difference both between companies and among products offered by the same company. These complex partnerships can obscure the role of Big Tech and the ultimate provider of the financial service, and they raise the question: Do Big Tech companies provide convenient interfaces, or are they true financial institutions? The answer to that question, perhaps not surprisingly, lies somewhere in between. Big Tech companies are neither pure financial institutions nor solely technology providers."

Report Number:
CRS Report for Congress, R47104
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Media Type:
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