Abstract:

For years, the largest Big Tech companies such as: Amazon, Apple, Facebook or Google have been trying to get a foothold in the financial sector. The main reasons behind entering this sector are: revenue diversification, access to vast amount of customer data, increasing customer loyalty and volume as well as complementing their core services. Younger generation, which is very familiar with digital solutions, shows significant interest for the potential switch to Big Tech companies in order to use particular financial services. Big Tech companies have already started to enter the financial sector, most notably in payments and asset management. Long-term trends could also be beneficial for Big Tech, since financial sector has been undergoing through digital transformation and bank online usage significantly increased, which were only accelerated by COVID-19 outbreak. Moreover, Big Tech companies outperform banks in terms of financial performance after COVID-19. The research paper aims to test two hypotheses, which are as follows:

-               Big Tech companies have significant potential to dominate global financial system.

-               COVID-19 strengthened Big Tech global position and weakened biggest players in the banking industry financially

For the purpose of the paper, the following methods have been applied: critical analysis of literature and research papers, descriptive method and comparative analysis of presented data.