CBInsights has released an extensive update focused on the role of “Big Tech in Fintech: How Amazon and Google are battling to own transactions.”
The comprehensive research report from CBInsights pointed out that while Amazon and Google have reeled in their efforts to offer their own financial services, they “continue to embed themselves in the digital financial ecosystem.”
According to the CBInsights research report, Big tech won’t “be your next bank — but they’ll play a part in many of your transactions.”
CBInsights further noted that “after nearly a decade of big tech companies venturing into launching their own financial products, the major players have now pulled back.”
The report revealed that most “have shifted to roles as tech providers, broadly supporting advances in financial infrastructure.”
As stated in the CBInsights repot, Amazon and Google stand out in this area:
- Amazon is embedding itself in more financial transactions via partnerships, investments, and acquisitions. It’s using these relationships to reach customers across more geographies and a wider range of services.
- Google has shifted away from providing financial services and instead is connecting its existing platforms to others’ financial offerings. The company is also investing and partnering to enable digital-first financial tools.
The researchers also mentioned that they mined CB Insights data “on Amazon’s and Google’s investments, acquisitions, and partnerships, as well as patents and earnings transcripts, from January 2021 to July 2024 to explore how the companies are reengineering their fintech strategies to make moves in the space.”
In other key updates from the research firm shared last month, it was revealed that blockbuster deals to Stripe and AlphaSense buoyed an otherwise flat quarter for the Fintech sector. This, according to an extensive update from CBInsights.
On the surface, Q2’24 was a return “to growth for fintech, with funding increasing 19% quarter-over-quarter (QoQ) to $8.9B,” the CBInsights report revealed.
However, two huge deals — for market intelligence firm AlphaSense and payments juggernaut Stripe — obscured the reality “that it was another tepid quarter for the sector as a whole.”