It is likely that the real bank will not become one. But after agreeing with Goldman Sachs to launch a savings account in the US with an interest rate of 4.5%, Apple is shaking up the world of credit around the world. This concern was explained on April 25 in his LinkedIn profile, a banker as old as Roberto Nicastro, general manager of Unicredit for 18 years and today founder and president of Banca AideXa. Nicastro asks, who replies: “Has Apple finally become a bank and a formidable enemy of retail banks? Bank (may never become one), but because it is now redefining Personal banking services As we know it, and it may work to develop the interface of banking services for customers to become the main gateway to banking services for individuals ».
According to Nicastro, we should also expect Google (Android) to make a move. It is clear that consumers are the winners in the short term. Ultimately, however, regulators and governments need to watch, watch and react, as the risks to competition in retail banking and the excessive concentration of power generated by the ‘customer share of total data’ are clear. The response of established banks will require fundamental changes in business models and technological architecture. Fintech companies will also have to adapt to the new environment, possibly re-positioning themselves or collaborating with other players in this new ecosystem.”
The former general manager of Unicredit traces Apple’s decline in financial services step by step, from the launch of Apple Pay in 2014 which raised a lot of bewilderment but is now used by 75% of iPhone customers, to the order deposit at 4,25% launched with Goldman Sachs. Nicastro notes: “These steps represent a major disruption to retail banking that was long predicted. They are now a reality and are based on Apple’s easy access to more than 1 billion customers, a superior and seamless user experience (UX), transparency and security, and long-earned customer trust.” from Apple, the massive availability of resources and a well-targeted selection of smart partners for various initiatives.” The former Unicredit manager continues: “What can you cook at Apple? After the acquisition of Kudu, it may finalize plans to offer consumer lending products or related services in British and European banking markets.Apple can easily access an unparalleled array of data, adding financial information to its already huge collection of customer information, thus developing credit history More complicated than you can imagine. The loan portfolio created by Apple can then be securitized and sold to institutional investors. The next big challenge could be offering account verification, as Apple has already taken the first step with Apple Wallet.
According to the bank manager, the Cupertino company would hardly require a banking license, because it is not part of his philosophy to enter a market that is supervised and regulated by many authorities. But «with Apple Savings, consumers will find it easier to get a competitive rate on cash deposits, thus reducing one of the most important profit streams for banks (deposit reductions). Additionally, by using Apple Pay and Apple Tap to Pay to close the loop on many transactions, Apple could significantly threaten the massive revenue streams of Visa, Mastercard, and PayPal (currently the world’s largest retail banking companies by market capitalization). It should be noted that Mastercard is an important partner for Apple Pay later. Moreover, in the consumer and mortgage lending sector, it can beat banks not only in access to customers, but also in wealth. credit history».
According to Nicastro, Apple may not be alone in this attack on the credit market: “It could be imitated by Google / Android. With around 3 billion users worldwide, Google’s Android platform has a larger customer base (albeit less affluent on average) than Apple’s. Despite weak signals from Google, Apple’s move was definitely noticed in Mountain View. Smaller mobile operating systems are also expected to move in.”
It’s likely that this same idea is that several weeks ago, one of the world’s largest (and most profitable) financial investors, Warren Buffett, decided to increase his stake in Apple. Think strictly of the banking hack of a company that produces cell phones and computers. And its credibility in front of customers is much higher than the credibility of traditional banks. Buffett explained himself very effectively a week ago in an interview with CNBC: «If you are an Apple user and someone offers you $10,000, but the only condition is that they will take your iPhone and you will never be able to buy another device, you will not accept it. If they tell you if you buy another Ford, they’ll give you $10,000 and not have it, and you’ll take $10,000 and buy a Chevrolet instead…”
Cover photo: Apple CEO Tim Cook
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