The U.S. consumer watchdog, not usually known to side with Wall Street lenders, has handed them a rare win by cracking down on Big Tech companies that are increasingly encroaching on banking turf.
Nov 17 (Reuters) - The U.S. consumer watchdog, not usually known to side with Wall Street lenders, has handed them a rare win by cracking down on Big Tech companies that are increasingly encroaching on banking turf.
While tech giants rely on banks to process payments via bank-issued credit and debit cards, some - like Apple - charge lenders a fee for those transactions.
According to McKinsey research cited by the CFPB, big tech companies, by some measures, have surpassed regional and community banks in terms of consumer trust related to digital payments.
Worried by this trend, the banking industry has been lobbying financial regulators to crack down on tech giants, arguing in public letters, blogs and congressional testimony that they are putting consumers’ privacy at risk.
“It’s just not necessarily always clear to your average consumer what the differences are between a regulated and insured bank versus a totally unregulated tech company,” said Paige Pidano Paridon, senior associate general counsel at BPI.
The Chamber of Progress, a tech industry coalition whose partners include Apple and Google, said last week the proposal was “more about giving Wall Street a leg up” than protecting consumers.
The original article contains 769 words, the summary contains 194 words. Saved 75%. I’m a bot and I’m open source!
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Nov 17 (Reuters) - The U.S. consumer watchdog, not usually known to side with Wall Street lenders, has handed them a rare win by cracking down on Big Tech companies that are increasingly encroaching on banking turf.
While tech giants rely on banks to process payments via bank-issued credit and debit cards, some - like Apple - charge lenders a fee for those transactions.
According to McKinsey research cited by the CFPB, big tech companies, by some measures, have surpassed regional and community banks in terms of consumer trust related to digital payments.
Worried by this trend, the banking industry has been lobbying financial regulators to crack down on tech giants, arguing in public letters, blogs and congressional testimony that they are putting consumers’ privacy at risk.
“It’s just not necessarily always clear to your average consumer what the differences are between a regulated and insured bank versus a totally unregulated tech company,” said Paige Pidano Paridon, senior associate general counsel at BPI.
The Chamber of Progress, a tech industry coalition whose partners include Apple and Google, said last week the proposal was “more about giving Wall Street a leg up” than protecting consumers.
The original article contains 769 words, the summary contains 194 words. Saved 75%. I’m a bot and I’m open source!