Will Facebook Become A Bank?

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Here is the list of Providus Bank Branches in Lagos

A little over two years after it was granted a commercial banking license with regional authorization by the Central...

Facebook founder Mark Zuckerberg may regret the day he supported the idea of more regulation and higher taxes for the tech sector. Margins will be squeezed if tech companies have to create bank-like compliance departments at the same time as paying higher taxes.

But bankers should also be worried about where all this might lead. Their biggest fear in the race to become digital is that a big tech company will step into the banking sector and compete head on. Already there are lots of examples of a big tech starting to make inroads into finance, including Facebook’s Libra currency project. Meanwhile, Goldman Sachs is talking to Amazon about offering small business loans to the tech firm’s US customers, and Apple has launched its own credit card together with Goldman Sachs.

Bankers have always argued that what would stop a tech company becoming a full-service bank is the panoply of regulations and requirements that would come along with it. But if the tech sector starts to become more regulated does this change the calculation as to whether obtaining a banking licence makes sense?

The big tech companies are no longer the new kids on the block and their years of easy profits look like coming to an end. This will make them start to consider moving into other sectors where they perceive a competitive advantage. Banking may start to move higher on that list.

- Advertisement -
Will Facebook Become A Bank?Will Facebook Become A Bank?

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  2018 SERAS Award: iSON Emerges Best Company for Work Place Practices

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Will Facebook Become A Bank?Will Facebook Become A Bank?

Latest News

Four strategies for helping women in fragile settings succeed in the digital economy

The coronavirus (COVID-19) pandemic is disproportionately impacting women’s livelihoods. Young women are more prone to unemployment and under-employment than men, and many...

How To Apply For NPower 2020 Recruitment

The NPower program was launched a few years ago and became one of the top opportunities for young individuals to begin their careers in...

Insider Dealing: MTN Nigeria Discloses Purchase of 920,000 Shares by Toriola

MTN Nigeria Plc on Thursday disclosed an insider dealing of 920,000 shares in line with the new Nigerian Stock Exchange (NSE) policy. In a statement...

SSA Monetary Policy Response to COVID-19: At the expense of price stability?

The global outbreak of the novel Coronavirus in early 2020 precipitated an economic crisis in the sub-Saharan African region as the prices of key...

Opay shuts down other business arms to focus on fintech, e-commerce

OPay launched by Opera software has announced a shutdown of some of its business units to focus only on financial technology services. Services on OPay...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Will Facebook Become A Bank?Will Facebook Become A Bank?