Limited Development of Big Tech Firms in Credit Activity: Lack of Incentives or Barrier to Entry?

The limited expansion of Big Tech into retail banking activities in the EU (and the U.S.) is, at first sight, a puzzle.  Big Tech can leverage certain advantages like network effects and control over entire ecosystems to expand and disrupt the retail banking sector. However, the evidence suggests that Big Tech has made limited advances outside of payment systems in the wealthier countries. We advance several explanations for this puzzle. As it turns out, the overhaul of the financial regula