Banks call for crackdown on Apple over allegations it hoards UK spending data

Barclays chief executive Matt Hammerstein calls on regulators to better monitor big tech companies' use of consumer data

Technology Giant company offers contactless payments via Apple Pay in UK since 2015. In the US, it is aggressively promoting financial services, offering credit card, savings account and buy now, pay later services.

It is unclear whether the company plans to bring it to the UK, but banks are believed to be concerned that its potential access to data could give it an advantage if it decides to do so.

The Practice Group letter said the FCA could bring tech companies' payment systems under financial services regulation or limit the amount of data big tech companies can use when launching financial products.

The panel is chaired by Mr Hammerstein and includes representatives from Lloyds, Nationwide, KPMG, Vanguard, Aquis Exchange, UBS, NatWest, Admiral, Rathbones and digital bank Chetwood.

An FCA spokesman said: “Big tech companies have potential. drive innovation in financial services, but their unique access to large data sets such as retail or social media could give them an advantage in the future when combined with the financial data companies already have.

“That's why we've launched a call for information to better understand how this data and access to cutting-edge technology can impact consumers and businesses.

“In the meantime, we're setting standards for critical important third parties, such as cloud or artificial intelligence services, so that we can manage risks and protect market integrity.»

A Barclays spokesman said Mr Hammerstein signed the letter in an independent capacity and that the letter reflected the point panel view.

Apple said it does not use Apple Pay data to create user profiles and that transaction information is stored on users' devices, not on the company's servers.