Role of technology in iinovative financial services as reflected in the breakthrough of BigTech companies

Abstract

Fast digitisation can be observed in everyday life including financial services. The analytical tools of Big Data, such as artificial intelligence and machine learning are able to promote user awareness in terms of the characteristic features of financial products and can offer personally tailored information on how to utilise their financial products and the management of their financial sources. Financial service providers proactively apply artificial intelligence and machine learning in customer support (for instance, virtual assistants are added to telephone customer service). In addition, the appearance of BigTech companies triggers further turbulent development and service innovation in the financial services industry. Non-bank competitors appearing in the field of financial services and the proliferation of digital innovation and new technologies are a constant challenge and risk to banks’ everyday operations and clientele as they must face risks and fight competitor pressure while the regulatory environment places strict limitations on their operations. In this paper the authors offer a comparative status survey of banks and BigTech companies as they investigate the factors, development paths and operational areas that reflect the differences in cross-sectoral and industry regulation and have an impact on the cyber security risks of digitisation.