BigTech in Financial Services: Emerging Regulatory Considerations

Parma Bains, Gabriela Conde, Nobuyasu Sugimoto and Caroline Wu

No 2026/009, IMF Technical Notes and Manuals from International Monetary Fund

Abstract: Large technology firms (BigTech) are increasingly expanding into consumer-facing financial services, particularly payments, credit, insurance, asset management, and financial SuperApps. While their current financial stability implications remain limited in most jurisdictions, rapid growth, especially in emerging market and developing economies, raises new conduct, prudential, and systemic risks. This paper analyzes BigTech business models, key activities, and associated risks, and assesses the adequacy of existing regulatory frameworks. It discusses practical options for supervisors to enhance risk identification, strengthen sector-based and group-wide supervision, expand the regulatory perimeter, improve data protection frameworks, and reinforce domestic and international coordination. No global financial standards apply specifically to BigTech. Given the cross-border nature of BigTech activities, global standards should be developed to facilitate internationally consistent regulation and effective cross-border cooperation.

Keywords: BigTech; BNPL; conglomerate; emerging market and developing economies; financial stability; fintech; systemic risk; insurance; credit; payments; asset management; regulation; supervision (search for similar items in EconPapers)
Pages: 40
Date: 2026-07-10
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