“Banks have watched less regulated finance companies ranging from mortgage lenders to private-equity firms encroach on many of their main businesses,” Peter Rudegeair reports for The Wall Street Journal. “But ask an executive or board member at a bank what nonbank company they most fear, and they’re likely to name the world’s biggest technology company, Apple Inc.”
“Two out of every five respondents to a recent survey by information-provider Bank Director said that apart from other banks, Apple was the competitor they most worried about, followed by Wal-Mart Stores Inc. and then online lenders such as Lending Club Corp.,” Rudegeair reports. “When it comes to Apple’s mobile payment service Apple Pay, seven out of ten respondents said their bank did not offer it, with the most cited reason being that they did not think their bank was ready.”
Rudegeair reports, “Among executives and directors at larger banks, three in five fretted about Apple, though nearly as many said their institution offered Apple Pay to its customers.”
Read more in the full article here.
MacDailyNews Take: Oh, but Apple Pay is barely making a dent and will succumb soon to Samsung Pay according to certain geniuses, so don’t worry your pretty little heads about Apple, worry about Samsung, Big Banks!
SEE ALSO:
Analyst: Samsung Pay could leapfrog Apple Pay, Android Pay – August 17, 2015
About time they are scared of something. But honestly Apple Pay plays right into their hands by making cash obsolete.
Want to scare banks? Have people direct deposit their pay checks with Apple.
I see no reason for Big Banks to fear Big A. As a matter of fact Apple Pay will help in reducing unauthorized card users.
In 5 years, with 90+% of merchants accepting Apple Pay and 600+ million Apple Pay users around the globe, Apple shifts gears and becomes a “debit/credit card” company, putting its then $300 Billion in cash to work at 1%/month (12%/year) vs current 1.2%/year on its cash.
Alternatively, Apple partners with banks, reduces merchant fees and earns 0.75%/month (9%/year) vs current 1.2%/year on its cash.
Nobody even knows what their “debit/credit card” number is. There’s nothing for hackers to steal from the likes of Target, Best Buy, Sears, or anywhere where else that issue store cards.
A corrupt business that continually looks for new ways to fleece its costumers. With that kind of business strategy, how could Apple ever make inroads into banking?
By not being corrupt.
Apple saved an obsolete music industry that was apathetic toward their customers (ever paid a lot of money for a CD then gave up trying to open the stupid thing with the glue wrap they use “protect” it?) and was bleeding from pirate industries, only to have the same industry blame Apple because their business as usual model no longer worked.
Yea, I see the same thing happening with banking.
Actually, if Banks should fear any Vendor, it *should* be Samsung. It is likely their attempt to copycat ApplePay (Samsung Pay) will have poorly thought out or poorly executed ID protection, and will result in a massive security breach that will result in many dollars lost for merchants and customers. I’d iCal it.
If you’re the Federal Reserve Bank, you can print all the money you want. The Fed fears no one.
It’s a disrupt or be disrupted market out there right now. If a company isn’t innovating they should be scared in general, not just of Apple.
I’ve worked on a lot of huge conferences for the banking industry and the banks most certainly do fear new competition from outside of the industry.
They were extremely concerned a few years ago when the Virgin group was planning to offer financial services and are rightly alarmed at what changes Apple might bring to the industry.
The banking business does not want change or new ideas that might mess up it’s profitable way of dealing with it’s customers.
Spot on. The banks are very content with the status quo. With lawmakers in hand they’ve shaped the banking regulations to fit their old business model and to make the barriers to entry for any new competitor enormously steep.