The chief of the Financial Conduct Authority (FCA) has said Big Tech is a “priority” as the watchdog looks to make use of the vast swathes of data that the likes of Google, Microsoft, Amazon, Apple and Meta have access to.
On Monday, FCA chief executive Nikhil Rathi unveiled the regulator’s plans to explore whether access to Big Tech data could result in improved products, more competitive prices and greater options for consumers and businesses.
“Leading a co-ordinated and effective effort to make the most of the opportunities of Big Tech – whilst having an open conversation about the risks and what can and cannot be mitigated – will continue to be a priority,” he said.
“We are outcomes focused at the FCA, pro-innovation and technology neutral,” Rathi added, speaking at a Digital Regulation Cooperation Forum (DRCF) event.
Rathi, who is chairman of the DRCF, said the FCA wants to work with tech mega-caps to make use of their huge data sets.
“Big Tech’s growing emergence in financial services has already made life easier for consumers, but it is still unclear how valuable their data will become in financial markets.
“That’s why we want to work with Big Tech to examine how their data could be most helpful for financial firms and their customers in future, and to ensure competition evolves effectively,” he explained.
At present, Big Tech companies have access to financial services data through Open Banking but do not have to reciprocate by sharing their own data with the financial sector.
But if the FCA deems technology companies’ data useful for finance, it will “incentivise” sharing through Open Banking.
Equally, if the FCA finds there are risks from not sharing, it will suggest regulations to the Competition and Markets Authority (CMA) via the Digital Markets, Competition and Consumers Bill.
Rathi’s speech also outlined the FCA’s newly-published response to the UK government’s white paper on Artificial Intelligence (AI). The regulator has welcomed the pro-innovation approach.
Earlier this year, the FCA launched a fresh call for Big Tech firms to crack down on mass fraud on their platforms.