Tech giants entering the banking and financial industry is not an issue of the future, it is already happening. This phenomenon has crucial implications that extend well beyond the banking system. There are questions like: Will tech giants be competitors of incumbents or will they rather partner up? How is the financial regulation going to handle this radical change, and will it succeed in creating a level playing field? What are the implications from a political and social point of view? Will tech giants acquire too much bargaining power in dealing with sovereign states, allowing them to shift political decisions and laws in their favour? This edited book provides a number of answers to these questions through a research effort on the economic and political implications of this technological revolution. While it is impossible to stop this revolution, it poses the challenge of steering towards a sustainable and inclusive improvement of our society and economy.
Volume produced in the framework of the strategic partnership between IAI and Intesa Sanpaolo. Presented in Milan on 6 June 2019 in the event entitld "The rise of tech giants. A game-changer in global finance and politics".
1. Comparative Advantages
1.1 Technology: a crucial component
1.2 Reputation and trust
1.3 Information accumulation and big data analysis
2. Business Models and Strategies
2.2 Google, Apple and Facebook
2.3 Competitors or frenemies?
2.4 Partnerships: a win–win solution
3. Regulatory Framework: A Barrier or a Trigger for Change?
3.1 PSD2 between data access and enhanced competition
3.2 Open Banking in the UK: a global pioneer
3.3 The new regulatory framework: an opportunity for Techfin
4. Case Studies: Alibaba in China and Rakuten in Japan
4.1 Alibaba, a giant from China
4.1.1 MYbank, a technological bank
4.1.2 Ant Financial conglomerate
4.2 Rakuten, a global technology ecosystem
4.2.1 From an e-commerce store to a multibusiness corporation
4.2.2 Rakuten Bank’s development
5. Political Implications
5.1 Size does matter
5.2 Fiscal and financial issues
5.3 Digital identity
Focus 1. The Fintech Ecosystem: An Italian Perspective / Filippo Renga, Laura Grassi and Nadir Snouno
Focus 2. Established Banks and Tech Giants – Friends or Competitors? / Francesca Rosati and Teresa Spada
Focus 3. The Development of Digital Strategy and Business Models in Banking Activities / Cristiana Schena and Alessandra Tanda
Focus 4. Big Data Companies in Banking and Financial Services Markets: An Antitrust Issue? / Mariateresa Maggiolino
Focus 5. Information Technology Innovations, Tech Giants and the Fintech Industry / Fabrizio Virtuani
Focus 6. Data Sovereignty: The European Way to Foster Competition in the Digital Economy / Nicolò Romani and Giancarlo Sfolcini