Tencent Technology News-A cabinet member of the Obama era of former US President Obama recently said that such asAlphabet Inc-CL C和AmazonTech giants like this are subverting the traditional lending business of small businesses, thus putting more competitive pressure on traditional banks in the field of installment lending for small businesses.
The former cabinet member is Karen Mills, director of the small Business Protection Administration under President Obama. Mills recently told CNBC that tech giants could upend the small business lending market and deal a blow to traditional banks involved in these businesses.
"I think they [the tech giants] will become the dominant players in the small business lending market, which is the product of the next phase," Mills said at the Randy European Conference on Financial Technology (LendIt Europe fintech conference) in London recently. But the question is, in what form will it appear, and what kind of regulator will be responsible? "
At the beginning of this yearAmazonIt claims that the company has provided more than $1 billion in loans to a number of small business businesses seeking to expand their business through its own website.
Today, online business loans are increasingly becoming a priority for many financial technology lenders. For example, the well-known American P 2 P company Lending Club allows investors to provide loans directly to small and medium-sized enterprises.
"whether from a US perspective or a global perspective, it is not difficult to find that traditional banks are doing their best, including Barclays and other banks," Mills said in an interview with CNBC after the conference. Besides, you're bound to seeAmazonThe influence. "
Mills also said, "AmazonThey have clearly demonstrated their attitude, and they will at least provide financial support to the businesses they know. This is very wise. " She also said that in the era of artificial intelligence, likeAlphabet Inc-CL CSuch technology giants will use artificial intelligence for information integration, which will also provide them with a competitive advantage in the field of financial technology.
Mills said, "if you think about it,AmazonYou already know its merchants very well, so you should also think ofAlphabet Inc-CL CYou should also know a lot about all companies that buy and sell goods through their platforms. It is not difficult to imagine that in such a world, these tech giants know more about credit and about small businesses themselves. "
Supervision and control
Mills' comments come at a time when a financial regulatory regime for financial technology companies is about to emerge.
In the United States, there has been a heated debate about whether the federal government should grant special banking licenses to technology companies so that they can compete with banks across the country.
"I think this is something that has not been fully settled in the financial technology sector," Mr Mills said. "
The US Office of the Comptroller of the Exchange (OCC) encountered opposition from some state regulators and banks when it considered granting a "national banking licence" to financial technology companies last year.
Mills said that the United States currently has a number of financial institutions, including the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission. But she also says there is little supervision over small-business lenders. Mills says traditional banks and fintech companies are facing concerns that mature tech giants will snatch their jobs.
In Mills' view, small businesses have a lot of hierarchical needs-cash, investment, time, more income, etc., and tech giants are able to meet these needs of small businesses. can provide an effective system for small businesses, give them more time to do their work, and have access to more capital and channels to increase their income. (compiled / Jinquan)