What is the situation in practice?

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E.Kh.: In practice, the reduction of costs for financial institutions through further automation of processes and better risk control often simply does not keep up with the increase in their own costs for the implementation of new technologies, maintenance and adaptation of existing technological platforms.

At the same time, new players in the financial services market who are lucky enough to find their niche, as a rule, quickly fall first on the “radar” and then into the “paws” of leading financial corporations or ecosystems, which, again, as a rule, are least interested in price competition among themselves.

New financial products are also often only seemingly australia whatsapp data to consumers. For example, in a number of countries, commissions on securities transactions have been dramatically reduced to zero for retail clients of brokerage companies. However, at the same time, these clients have lost access to any kind of high-quality market analytics. Moreover, small investors are actively involved in high-risk transactions using borrowed funds. Data on client transactions and orders to buy or sell securities, and the execution of these orders by the broker are sold to large "sharks" of the capital markets. Naturally, this information is subsequently used in ways that are not in the interests of retail clients. Free cheese is rarely served outside of a mousetrap in the financial services market.

itWeek : In general, who are the beneficiaries of the introduction of new technologies in financial services markets today?

E.Kh.: So far, the main beneficiaries of the information technology revolution in the financial sector appear to be not so much consumers or small businesses, but leading financial corporations.

To illustrate: the net profit of the retail and commercial business of the largest American banking corporation JPMorgan Chase & Co. in 2011 was $3.8 billion, and in the "covid" 2020 - already $8.2 billion. An increase of more than 2.1 times. For comparison, disposable personal income in the United States over the same period increased by only 30%. Interestingly, with such enviable indicators, JPMorgan Chase & Co. complains in its latest annual report that large technology and fintech companies compete with all of its divisions.