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Breaking Into Finance: Big Tech Edition

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This week you are getting one step closer to being tech-savvy. This article will focus on the potential and already growing insertion of tech giants into the banking and financial services world by evaluating whether it is a slow isolationist wave or a mutually modernizing venture.


Current Trends

Let’s look at how the major players are positioned. Apple’s recent announcement of deepening its financial presence through new high-yield savings accounts with Goldman Sachs caught only some by surprise [1]. Their nearly decade-long path into financial services since the appearance of Apple Pay onwards has been among the most successful with cash back, installment lending, credit cards and other elements of the banking toolkit being offered to their customers [1]. Further, with the acquisitions of FinTechs like Credit Kudos, Apple seems to have the clearest blueprint [2]. Google has had a more unsteady, yet not less promising, road. With the dissolution of their golden boy Google Plex, they have asserted the strength of Google Pay and plan to increasingly push it through in the next couple of years through new key hires [3]. Amazon, Meta and Microsoft have been a bit quieter with Meta Pay and Amazon Pay going in a seemingly different strategic direction [4].


Given the relatively cautious moves of these giants, we should ask ourselves whether they are fully devoted to expanding their financial and banking ambitions. The mass consumer data they hold, the abundant resource pool at their disposal and the first-class internal R&D arms they have developed recently all signal one thing: they will soon fully join the race to revolutionize banking and finance [2]. After all, they hold the technology and creative spark that enables traditional and emerging banks to evolve and progress in their client services and interactions. If they hold the keys to Eden they might as well be the first ones to take a peak.

On the other hand, the partnerships Big Tech have established with traditional financial organizations may point to testing the waters before they dive in [1]. Long-established banks indeed have a structure and network that would take years to conquer and mirror [2]. Similarly, banks have been swift to highlight the mutual benefits of tradition with innovation [2]. Appealing through the efficiency route, they have at the very least delayed the mass entrance of the tech leaders through collaboration.

Is this the calm before the storm or are Big Tech focused on banking and financial services only as one of their endless other prospects?

Written by Iñigo Sancho, Chief Research Officer at KJC



[1] Financial Times

[2] UK Finance challengers

[3] Forbes digital-checking-account-killer-app/?sh=5f77564920d5

[4] TechCrunch

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