Big tech firms may suffer from ‘too much information’ – BIS paper
Firms that pry too much into customers’ affairs may find themselves with no business, authors say
Big tech firms have an informational advantage over banks when lending to small businesses, but they may also suffer from “too much information”, research published by the Bank for International Settlements finds.
The working paper by Leonardo Gambacorta, Fahad Khalil and Bruno Maria Parigi outlines a model in which big tech firms compete against banks. The paper emphasises that there may be a trade-off between privacy and the efficiency of financial services.
Tech firms can gather large
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