American Big Tech poses a threat to the Netherlands
Thus an important Dutch financial institution. They claim that the American Big Tech poses a danger to the Netherlands. Read here why.
The Dutch Central Bank (DNB) is committed to a stable financial system: stable prices, solid financial institutions and a well-functioning payment system. They see that now, and even more so in the future, a threat posed by the American Big Tech. But why?
American Big Tech: danger for the Netherlands!
Of course we can call them like this: Apple, Google, Amazon and Facebook. Just a few large tech companies that are also active in the Netherlands. Due to the corona crisis, they have become even more active, especially in the payments market. Very easy of course if you can pay directly on Facebook. The tech guys enter into partnerships with players in the existing market. For example, with banks. Smart too, because this means they don’t have to apply for permits. According to a report by the DNB that charts this: ‘In this way they can benefit from the relatively high confidence that consumers have in banks and insurers.’
Risks and Opportunities
DNB outlines several risks in the report. There is a chance that customer confidence in banks will be affected by the intensive cooperation. DNB also sees risks with regard to privacy. Due to the collaboration, banks are increasingly using cloud solutions. And they buy these cloud solutions from the tech giants. As a result, a lot of data is stored and analysed. European supervision of this is then crucial, while this is not yet the case.
The strength of these large companies lies in the ease of use, according to the DNB. And that is of course true. Therefore, banks need to prepare for a greater role for these companies in the financial market. But of course they can complement each other in order to serve the consumer better. Dutch politicians have also read the report. After the publication, a member of parliament put written questions to the minister.
