Big Tech firms include the major tech and online players in the UK consumer and SME markets, such as Google-owner Alphabet, Facebook-owner Meta, Amazon, Apple and Microsoft.

The FCA says it will look at the potential “benefits and harms” of Big Tech on retail financial services.

The watchdog says Big Tech firms’ presence in UK financial services markets has been steadily increasing and they may expand further.

Sheldon Mills, executive director of consumers and competition, said: “In recent years, Big Tech’s entry into financial services, in the UK and elsewhere, has demonstrated their potential to disrupt established markets, drive innovation and reduce costs for consumers. 

“Across the world, we’ve seen the capability of Big Tech to offer transformative new products in areas such as payments, deposits and consumer credit.

“We want to make sure that these benefits are fully realised while, at the same time, ensuring good consumer and market outcomes. This is vital when we consider the role of Big Tech firms in the provision of key technological infrastructure like cloud services.”

Mr Mils said the review would help inform the FCA’s “pro-competitive approach to digital markets.” The FCA has encouraged consumers, firms and fellow regulators to share their views.

The FCA believes that Big Tech firms could help increase competition but might also exploit their “market power.” 

To spark debate, the FCA has published analysis focusing on the potential competition impacts of Big Tech’s entry in four vital retail sectors: payments, deposit taking, consumer credit and insurance.

The FCA will also publish a Discussion Paper shortly.

No regulatory changes are being proposed at this stage, the FCA said.