Big Tech Moves in on Big Finance
Amazon, Google and China’s Alibaba are poised to disrupt the financial sector that was once dominated by companies such as JPMorgan Chase and Goldman Sachs, says the Axios blog entry, “Big tech’s next prey: Big Finance.”
Big Tech is armed with caches of data about billions of people worldwide and the ability to create new and innovative platforms. However, it is the access to this personal data that gives these companies the edge as they can predict who is going to default on loans and who is not.
Amazon Lending, the platform’s lending arm, has lent $3 billion to merchants since 2011 and Google’s venture capital division is increasing investments in cross-border conference and blockchain. Alibaba’s Alipay in China is becoming the “dominant means of payment in a booming market that lacks credit cards” and its Fintech arm, Ant Financial, is estimated to be worth $74.5 billion.