Apple could just start their own bank. Apple’s wealth, power, and brand allure should alleviate some of your concerns. They will find a willing partner who will uphold their offering.
The amount of red tape involved to become a fully regulated bank will make even a “trillion” dollar company bend the knee.
There’s a reason why tech companies partner with well established banks in the first place. To avoid the headache involved with day to day operations of a bank.
GS leveraged their reputation and greased the regulators to get into the consumer bank business. Now they are paying the price.
Maybe Apple would be a decent bank. But at the same time I don’t want to discuss my financial details with a random Apple Store employee. Lol
> These features [...] led other banks with established consumer credit card operations including Apple's long time partner Barclays, along with Citigroup, JPMorgan Chase and Synchrony, to turn down Apple's proposal. Goldman Sachs defended the terms of the deal saying they were "thrilled" with the partnership and seeking "to disrupt consumer finance by putting the customer first."
so it was hard enough to find a willing partner in the first place, and seeing the trouble Goldman Sachs has with it is not really likely to entice others to jump in...
Banks are not good businesses for a shareholder. When a bank is in trouble the shareholder tends to be zeroed to protect deposits. PE ratios for bank stocks tend to be bad.
You have a lot more leverage being a big client of a bank than its shareholder. The pecking order is roughly big client > senior management ~ shareholder > other senior employees > smallish client > junior corporate employee > retail client ~ teller.
>They will find a willing partner who will uphold their offering.
I don't think people quite understand what is on offer. And precisely why no bank wanted to work with Apple apart from Goldman, which has zero retail banking experience.
>Apple could just start their own bank.
It is not like Apple owning a bank could do without all the banking regulation. The whole reason why Apple didn't start their own payment network ( Visa / Master ) or their own Bank ( Goldman ) was because they dont want the risk, but want all the benefits.
above and beyond the existence of a savings account with a reasonable APY, what i like most about the apple card/savings situation is that interacting with the bank itself is entirely abstracted away yet i still get all the backing guarantees of a real bank, like FDIC insurance. I just don’t have to deal with their {paperwork, inevitably insufferable app, …}.
next_xibalba|2 years ago
xyst|2 years ago
There’s a reason why tech companies partner with well established banks in the first place. To avoid the headache involved with day to day operations of a bank.
GS leveraged their reputation and greased the regulators to get into the consumer bank business. Now they are paying the price.
Maybe Apple would be a decent bank. But at the same time I don’t want to discuss my financial details with a random Apple Store employee. Lol
rob74|2 years ago
> These features [...] led other banks with established consumer credit card operations including Apple's long time partner Barclays, along with Citigroup, JPMorgan Chase and Synchrony, to turn down Apple's proposal. Goldman Sachs defended the terms of the deal saying they were "thrilled" with the partnership and seeking "to disrupt consumer finance by putting the customer first."
so it was hard enough to find a willing partner in the first place, and seeing the trouble Goldman Sachs has with it is not really likely to entice others to jump in...
dchftcs|2 years ago
You have a lot more leverage being a big client of a bank than its shareholder. The pecking order is roughly big client > senior management ~ shareholder > other senior employees > smallish client > junior corporate employee > retail client ~ teller.
petesergeant|2 years ago
My understanding is that it's much easier to buy one than start one
ksec|2 years ago
I don't think people quite understand what is on offer. And precisely why no bank wanted to work with Apple apart from Goldman, which has zero retail banking experience.
>Apple could just start their own bank.
It is not like Apple owning a bank could do without all the banking regulation. The whole reason why Apple didn't start their own payment network ( Visa / Master ) or their own Bank ( Goldman ) was because they dont want the risk, but want all the benefits.
hprotagonist|2 years ago