The combination of big data analytics, cloud computing, artificial intelligence and blockchain is transforming the way financial products are designed and distributed. For its proponents, this transformation is promising better consumer experiences, a better financing of the economy and a better efficiency of the financial system. Beyond those promises, cutting-edge technologies also lower the barriers to entry into the financial sector for Tech firms and make it possible to unbundle financial services into an array of distinct core functions such as channeling payments and money, providing financing, sharing risk and allocating capital. This new competition also implies that incumbents’ business model should be prepared to adapt: the unbundling of services will challenge business models built around the logic of an exclusive and comprehensive customer relationship possibly involving elements of cross subsidization; more mobile customers could limit the ability to cross-sell products; and higher deposit volatility may unbalance the funding of maturity transformation. That said, FinTechs are the talk of the town but BigTechs are the real deal. On the one hand, frankly, FinTechs already had a huge and positive impact on the financial sector by developing new solutions and proving that these solutions bring value. However, overall, with a market capitalization of $ bn worldwide, Fintech start-ups have been 1/4  BIS central bankers' speeches  so far more a complement to existing financial actors, through integration or partnership, than irresistible rivals to incumbents.

On the other hand, the market capitalization of the GAFA – Google, Amazon, Facebook, Apple – is 25 times higher than that of the whole FinTech universe. The BigTechs already have a material footprint in financial services1 and competitive advantages to expand their activities further in this area. On top of massive financial resources able to support investment at scale and an undeniable digital agility, they benefit from strong brand recognition, worldwide customer base on which they have accumulated proprietary database and privileged access to forefront technologies. In that context, BigTechs more than FinTechs have the potential to fundamentally  redefine financial intermediation beyond the universal banking model toward integrating financial services within a universal ecosystem. Such a move is already gaining considerable traction in China. And it is raising very fundamental questions to which I will come back. To conclude my first point, digital finance may not lead to a more decentralized system as the centripetal forces of network effects may profit most to large conglomerates. Rather than  eliminating intermediation, if left on its own, digital finance will more likely lead to reshuffling the cards with the most digitally agile incumbents and the most financially able challengers becoming the new dominant (and potentially systemic) intermediaries. II. A common challenge: Rethinking old issues, investigating new ones This leads me to my second point. The digitalization of finance forces us to revisit old regulatory and supervisory questions and to face new ones. Among old issues to revisit, I would like to highlight two of them.