Bharat Masrani, the chief executive of Toronto-Dominion Bank, says it would be “appropriate” for regulators to impose oversight on “non-traditional” technology-driven players that compete with banks.
In a speech delivered Thursday at TD’s annual shareholders’ meeting, he urged regulators to consider whether the “safety and soundness” of these new financial services players matters to the overall stability of the financial system.
“I think it is important that as a country… we ensure that those things are not compromised as the innovation comes forth,” Mr. Masrani said after the speech, adding that he is not opposed to competition and more choice for customers.
“We are talking financial services, we are talking people’s livelihoods, and banks are there to make sure that is secure, that our institutions are safe and sound.”
He said his remarks were aimed at new players in the payments and loan business, some of which operate in what has become known as “shadow banking system.” He did not mention specific companies, but said some have “household names.”
Earlier this month, Royal Bank of Canada CEO Dave McKay warned that banks are on a “collision course” with the likes of Apple Inc. and Google Inc. In the U.S., the technology companies have begun taking a slice of revenue as customers fully embrace mobile banking.
Apple Pay, the U.S. smartphone maker’s mobile payment platform, has not yet been deployed in Canada.
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