Silicon Valley and the Big Tech that emerged from it are collectively though separately aiming to cut out the financial middle man and start doing banking in their own right to provide the payment gateways for themselves. The move is fascinating to oberseve as the financial institutions have largely been working cooperatively to support the new moral supremacism of Silicon Valley by cutting off offenders of big tech from their bank accounts. Now, Big Tech is thanking banks the only way they know how, by exploiting their weakness and taking over their territory.
Thanks Banks, but, we got this from here.
Big Tech’s entry into banking sounds death knell for traditional lenders
From thefederal.com
2021-09-12 01:00:54
Excerpt:
Big Tech firms could pose a far bigger challenge to brick-and-mortar lenders than fintech startups that lack the scale of platform businesses
The slow but surefooted strides made by Big Tech firms like Google, Amazon and Facebook into the banking industry might end up dislodging brick-and-mortar lenders in the country.
The tech industry which has been slowly creeping up on licensed deposit taking institutions in India, is all set to disrupt the business of traditional lenders in India, said media reports. Prompting the question whether the traditional brick and mortar Indian banking industry, which is already crippled by rising NPAs and bad loans due to the pandemic, would then meet the fate of dying newspapers in the future?
