This presentation by Stephen DRURY, Santander UK, was made during the discussion “Digital disruption in financial markets” held at the 131st meeting of the OECD Competition Committee on 5 June 2019. More papers and presentations on the topic can be found out at oe.cd/cclm.

1. Digital disruption in financial markets
Stephen Dury, Director of Innovation,
Santander UK
OECD Roundtable, Paris, 5 June 2019

2. 2
Santander and technology
› Our Digital Advisor has helped to ensure
that financial advice isn’t just for the
wealthy.
› Our InnoVentures invests in a range of FinTech
solutions to find the latest technology in order to
better serve our customers.

3. Potential benefits
› Network effects
› Data advantages
› Economies of scope
› Asymmetric regulation
3
1. BigTech in financial services
Challenges
› Barriers to entry, exclusivity
requirements
› Intense data concentration and
blocking access to third parties
› Possibility to extend products which
could lead to tying/bundling
› New players remain outside sector
specific regulation, e. g consumer
protection, anti-money laundering,
financial stability

4. Review prudential regulatory framework for banks
4
2. The need for a sustainable regulatory framework
Access to data
 An equal regulatory framework for all
Access to infrastructure
Fair taxation

5. 5
3. Inaction has consequences
Disintermediation
Adverse selection, moral
hazard
Discrimination
Preferencing Financial exclusion Systemic risk