Is Apple Secretly a Bank?
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- Опубликовано: 27 май 2023
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Apple has launched a credit card, a savings account and is offering direct loans... so is it a bank? In this video we discuss Apple's foray into financial services and discuss if it's fair to describe Apple as Big Tech's first bank.
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Quite a few companies are becoming pseudo banks. Just goes to show how profitable banking can be (especially since they don't have to abide by regulations that were implemented to prevent financial catastrophe).
And that, to me, is utterly terrifying. The guardrails on banking have been rolled back far too much, which caused the Great Recession in the late 2000s, and the rollback in the 2010s likely had a hand in what's been happening recently as well.
Obviously we can't put red tape to the point that business is impossible, but at the very least, common consumers need more protections so they are protected from risks that they themselves aren't taking.
I mean, they were already profitable before becoming banks, so like, it is profitable to be a bank sure, but these company are exploiting other avenues than just banking, and that is the real terrifying thing. One company, owning everything.
@@me0101001000 those guardrails were only rolled back in the US. The eu has only made them stronger.
The commonly used word is that companies are investors. Banking is more than the descriptive term. You need to abide by a lot of rules and you need specific licenses to be a back. Otherwise you're just a variant on a common investor.
Yea cause banking is a legal big sponzi scheme.. but if the poor does it is illegal but banks and the rich does it is fine if u have 10,000 on ur acc go to the branch to and say u want to withdraw all of it I’ll be my miserable salary that will tell no you can’t and to come back in 2 weeks being because the don’t have it. Do going to look for another fools $ to take it from him to give it to you cause your 10 grand the invested and making 100% interest free with your $ is all fucked
You don’t have to be a fan, or thrilled about the consolidation of services, but you have to appreciate Apple’s absolute masterclass in longterm corporate strategy over the last 15 years.
Today i learned I'm apparently a bank
Your name is Apple?
@@jtgd no, but he moves money, lends money, holds money & manages money. So according to Jamie Diamond, @Machine is a Bank.
Yeah bruh, I'm a bank too. My interest rate is 200% 😆
Vision: Maybe I am a bank?
Drax: I too am an incredible bank
This reminds me a bit of McDonalds. It's a food business, right? Wrong. At the end of the day, it's a real estate company. A long time ago, it may have been a restaurant, but now, their main business is in franchising, hence real estate.
It seems like some companies can get so big that they completely change what they are. Apple was definitely, at one time, a tech company, and today, I'd still mainly say it's a tech company. But maybe in a couple of decades, or even years, it might just become a bank with a tech product.
Same case for Amazon, it's not a online shop but a web service hosting provider.
@aku You watched “The Founder”
@@donaragorn technically, Amazon store is subsidized by aws from the start. This is why there isn't much competition in the online stores.
Mcdonalds started first by selling fast food first.
“Skills and decision making” is when I know it’s time for the next video. Why do all creators transition into the brilliant sponsorship the same way 🤣
As long as Apple will be regulated the same way as traditional banks, I don't see anything bad with it. The biggest problem with Apple entering this industry will have old banks, but they haven't done anything new since a long time. These banks cannot keep up with new start ups. Look at the UK banking industry - the best banks are not the traditional banks, but the online one. If Apple can bring innovation and force these old players to start competing with a good product rather than well established name, it would be only a benefit for us - consumers ;)
This really ought to be regulated. This is vertical integration, where consumers use apple accounts to pay for apple devices and services. This is just another play for monopolization
the US tends to be laxer with vertical integration than we are with horizontal integration.
@@esm2000 yeah, and that's a problem that should be fixed. the US isn't even good at stopping horizontal integration
It's called an NBFC (Non-Banking Financial Companies), which can be applied to Google as well...Like GPay/Google Pay & Google Wallet...many tech companies are moving (naturally) into fintech, esp. as digitization of payments & digital currencies explode/expand...
This might work somewhat in the US as it is missing a lot of regulations to protect the consumer and it's enormous debt culture.
But if they start pushing this in Europe fully. The regulatory bodies will crack down hard. The current banks will push for that hard, and rightly so. Rules for banking should apply to any bank and apple should not be able to circumvent that just because they are labeled differently.
Also there are rules on guaranteeing deposits, interoperability and open standards that i doubt Apple ID going to want to meet.
But if they do, that is fine, competition is allowed. But i see them offering little if any that is not already offered by traditional banks, at least in the EU.
@Bart Zuidgeest ---- People are totally misunderstanding what's going on here. Unlike any other bank in the world, Apple sells things that people want both hardware and services. They are not taking in people's money in deposits and speculating with it by making risky loans to other people. The only case where they take in deposits is on their US savings account, but that is fully insured up to 250k usd by the government like any savings account.
Why would Apple do all these services if they don't make much money on the banking side? It is simple math. Once they earn a profit and deposit it in a bank the return on their money is very low. Last year less than 1% per annum and this year around 4%. But that return is paltry compared to the margin they make on a sale which is around 38%. By making it easier for consumers to buy things Apple is creating more transactions at 38% instead of passively parking their money in a bank and earning next to nothing.
Now which regulator wants to muck up that attractive value proposition for consumers? Would the EU achieve some advantage if Apple paid less in taxes or hired fewer Europeans? Of course not. Over time Apple will create more and more great products supported by unique services. That is the reason people are interested in them in the first place. If folks aren't interested in their products the consumer simply buys something similar from some other company.
Wouldn't then the EU/UK be helping banks keep their "monopoly" Then like what is bad about Apple joining the big banks as a competitor?
european bureaucracy is the reason your continents share of the global economy shrinks annually and you act as if it is a good thing😂
@@STEP107 i just checked and basically the same happens for the US. It's because Africa's and India's economies are growing. And their people are young while western countries are aging with low birth rates.
At least in the EU people don't die because they cannot afford insuline or an ambulance. So yes compared to the US I'll take EU bureaucracy every day. At least we have a multi party function democracy unlike countries like the US where two parties of squabbling children fight over nothing while the people are getting poorer every day. The US even has book burning again.
I'm very grateful for the SEPA (Single European Payment Area), which makes instant and international bank transfers easily available, no need for Venmo, Paypal or a potential comparable product from Apple. It keeps the system decentralized.
PayPal is widely used in Europe, Apple Pay also. SEPA isn’t very useful for day to day purchases.
a transnational government initiative is not more decentralized than a bunch of private companies competing with each other. Do you know what decentralized means?
@@STEP107 saying single payment system is decentralized 😂
What are you trying to say SEPA's objective is totally different to what Apple is doing - it wouldn't stop them entering the SEPA.
its the opposite of decentralised
Please we want more TLDR Business!!
Visa and MasterCard may actually have to start making their fees and services competitive.
Anyone who’s started/runs a small business these days is all too familiar with the absolutely ridiculous cut Visa/Mastercard/Square demands to allow any transaction to take place.
It's the final stage of a company's lifecycle. Once the founders leave, followed by engineering talent, the only ones left are the accountants. And accountants like to do what they like to do best. Eventually, the lack of vision and innovation catches up, and the company goes out of business. There are many examples of this: HP, Compaq, IBM, Dell, GM, Ford, GE, etc. Once the accountants are in charge, the company is as good as dead.
Fix your timestamps 💀 this is not about Microsoft and Activision 🤣
now i'm imagining a proprietary bank account that is only compatible with apple products.
At this point i wouldn't be surprised if Apple made their own currency....
lmaoo idollars would be nice
Called apple dollars and only available for Apple Card users with a competitive exchange rate and they use the Apple logo as the symbol😁
There is a literal bank called Apple Bank for Savings in the NY metropolitan area.
By that line of thinking, Apple is a bank, a production studio, an engineering firm, software designer, service provider, etc etc
Play at 1.5x. We need tldr of this channel.
I have a savings account from Apple but you don’t need to buy anything from them you can link an account and send a portion of your account to a flexible savings account that gives more interest than a regular babk
Wow, that was an eye-opener. Albeit I still feel like this is in the same space as the drone delivery system, lots of little experiments, trials and segmented integration but no real movement towards market absorbtion. Now while this is certainly a more developed and cohesive form of that space, I am not confident that we will see the apple finance organisation really flex its muscles for another 5 years or so, not while the tech industry is being unravelled one multi-national conglomerate at a time by the efforts of AI. Although who knows, perhaps this could supercharge the Tech-Finance industry as we know it and overtake the social media giants as the preeminent source of revenue for these companies.
Do you really think that Apple won't take advantage of AI? In fact they already have been doing so for years. They employ a small army of really intelligent people who are experts in AI and ML.
By the way while Apple started out small with Apple Pay it its now used in hundreds of billions of transactions. The most heavily used contactless method in the world. In that sense this is very unlike drone delivery which a tiny number of people have used.
No, not secretly
8:59 that women just wanted Timmy to stop talking
umm GS offers 4.15% on their savings accounts...
literally the first things on their websites is: '4.15% Savings APY + 1.00% Referral Bonus = 5.15% APY for 3 months! Terms apply.'
Imagine Apple pay turning into a bank account...
Not secretly, but openly
Imagine you go to pay and they just have an iPhone and you have an android and then you get charged extra fees because you're not using apples proprietary system.
Technically it’s a private equity fund because marketable securities is the largest asset on their balance sheet - don't they buy a company on average every 3 weeks?
Big tech is continually coming under increased scrutiny and with the EU's recent Digital Markets and Digital Services Regulations it may seem sensible to diversify away from technology as a primary business source however, entering the financial sector is another picture. Entering the most regulated industry in the world and with Apple's track record with the EU they are bound to hit a hurdle.
Ultimately I think they'll probably get broken up by the competition regulators if they get too large or at least the competition barriers will be broken down by the regulators and that's probably why we haven't seen Apply Card in the UK or EU. Also just remember even though Apple may seem big and may be the largest market cap company in the world with $165 billion of near liquid assets Goldman Sachs has $2.54 trillion of assets under management (and they aren't even the biggest players in the game).
Never thought you could deposit money on starbuck and apple.. and pay rent on McDonald's
makes their stock less volatile
Don't you really need a bank license to work as a bank in many regions? I'm pretty sure in many countries in the EU (I'm almost certain in Spain it is) that is required.
Goldman savhs is handling the banking regulations and other lisence stuff. Apple is just the front brand and tech provider😊
@@johnsamuel1999 but the point of the video is that apple might want to cut out Goldman and do everything itself and it's already doing that in some areas. So yes they will need to get licensed and such themselves if they want to start doing this in the EU as a bank.
@@bzuidgeest Not necessarily. In Europe many fintechs also just operate under the banking license of a real bank. Their apple pay uses the visa/mc system to send payments between buyer and seller. But if both have an Apple cash account, they could just transfer the money directly and save the card transaction costs. The bigger they grow their customer base, the better they can reduce the card fees to Visa/Mastercard.
@@bzuidgeest possible, but they could partner with a European bank . As the above vommenter mentioned fintech companies also provide something similar (not sure if it happensz in Europe)
Why would they get regulated when they are adding more compation to the banking sector that let's face it needs it? Also is it unfair to people to stop them from getting another apple service and to apple that is dening them another way to make money? Like what is you never buy apple then want it soly as your bank? Is that not unfair?
Waiting for the Apple mortgage on the Apple house 😂😂😂😂
Nice t-shirt.
Check your chapters, they are misnamed for a different video
Bring it to NZ ASAP please they got my business the repayments etc seem better than anything I’ve seen here
What does tldr mean???
I put 40k in apple GS savings and so did a lot of other people
7:20 you release that you don't need to buy any thing... all these things is useless toys... I have an apple phone, and I don't need any more stuff at all...
But you need the phone, and if you ever require any of the other things, you are forced to buy in that same echo system or lose functionality.
@@bzuidgeest You don’t require any of these things. You maybe want them, but you certainly don’t require any of them… That is the main thing many of you don’t understand. You really really don’t need any of that stuff…
0:38: Apple has launched a high interest savings account in partnership with Goldman Sachs, offering depositors more than 10 times the average U.S savings rate.
1:17: Apple also launched a no fee credit card, issued by Goldman Sachs, and a buy now pay later scheme called Apple pay later.
2:10: Apple's expansion into financial services suggests their willingness to encroach on the banking sector.
6:41: Apple is expanding its ecosystem and pushing users to buy more products and services.
7:19: Competition regulators are scrutinizing big tech companies like Apple for potential anti-competitive practices.
Recap by Tammy AI
What we call the financialization of the economy, where more and more of the "goods and services" attributes as value in our GDP is associated with holding, moving, converting, or investing money rather than true economic activity, and it's become an increasing proportion of our economic system (late stage capitalism). Just look at airlines and every store with their own card. Power will continue concentrating in the hands of the few until something changes
Ok I'll give you imessage, ans services, but it might be time tomretire the lighning complaint as apple js transitioning away from it
I guess I'm a bank too
Consumers ❌
Con SHOO mers ✔
"Are you a bank?"
Apple: "Yesn't."
Jobs would turn in his grave if he only knew !
He said $16.5 trillion dollars, number on-screen is $165 billion. Guessing it’s the latter.
bro roll your sleeves down
“Conschumers”
If Apple is allowed to loan its money out on a Fraction Reserve Banking system, then yes, it is. But no bank would allow it to do so. Hence it is not.
Oh😮
"What is Apple?"
A fruit.
No it's not 🤦🏼♂️
@9:30 politician, wannabe journalists/analysts and the audience could benefit a lot more by studying in general and reading, brilliant is just a game to make people that pay a lot feel a lot more capable than they are with their games you play there.
tldr : no
Apple just buy Goldman Sachs
I wouldn’t trust apple far as I could throw them
just put all those money to bank duh...
This video is strangely spoken slower than usual... is there a reason?
It is a bank.
It's 165 bn USD not 16.5 bn USD.
read their balance sheet
iLater sound better
Apple is doing to banking what Mpesa did to Kenyan banking. Eventually, the fight will end with both sides collaborating so that Apple is not locked out of banking while soon, it will not be only Goldman Sachs benefiting from Apple Pay and Apple Pay may suddenly become even more widely accepted than Google and Samsung Pay due to merchants being offered lower fees if customers tap with Apple Pay.
Huh I'm gonna check Brilliant out but it sounds like skill share... which was (is) a scam. I really hope it's not I like your video but the end sponsor had me feeling like not... idk let's check out brilliant then
I’m sorry how is Apple secretly or suddenly? A bank they don’t even take there Apple Cash debit card too the next level like Samsung Pay does
Apple should become a bank. They have enough money to get into the business. Apple should create their own token. The apple coin to replace bitcoin. They may buy up goldman
With all the issues related to big tech companies, this just goes to show how useless banks really are if any company with the tech means can become a bank of sorts.
Edit: by useless I don’t say we could work without banks, I mean there is not really any special service provided by banks that could not be better provided by other types of companies. For instance, in Portugal, state bonds are sold by the mail company that also has the means to replace systems like VISA if they wanted to.
Where Bobby Axelrod failed, Tim Cook will succeed!
I would not use apple cash unless they are covered by the EU financial laws lol, i want my money (up to 100k) secured in case apple does fail/go bankrupt
you'll own nothing be a happy?, will apple potentially own people's whole lives in the long run?
Sheeple trap complete.
All other systems and services and offerings surely see it.
Don't let apple products work or integrate elsewhere.
Then it makes apples behaviour painful for their users.
Currently Apple is relentless rewarded from trying to destroy integration, interaction and innovation.
It seems the time is now for all others to use their playbook just on Apple.
Think of it as a lesson to Apple.
The worst company in the world
So you live without a smartphone?
you're right, that's why they are the rich company in the wold
The most scary part about Apple's rapid cross-sectoral and monopolistic expansion is how consumers (Apple sheep) and regulators seem to view the company as much more benign than so called data companies like Facebook, Google or even Amazon. To me the prospect of only one large company having access over consumer data presents a much bigger risk than a bunch of companies having access to data because they can hold each other's feet to the fire when they behave unethically.
Apple needs to make their chips more secure from hackers.
What are you drinking
This sounds like another euro hating video against Apple. Apple should not care since most euros are android based
This guy looks like a white Ali abdaal
I think I'd rather literally die than bank with apple of all places