By announcing its new service – Buy Now, Pay Later (BNPL) in March last year, Apple joined the league of the growing FinTech industry. With more than a billion active devices in the world, Apple already has a customer base of over a billion people for their bank. With this new service, Apple is set to manage tasks such as risk management, loans and credit assessments.
However, Apple isn’t yet a bank in legal terms and the success of BNPL service with Apple Cards and e-credit services will decide its future in the financial sector globally.
What Makes It Easier for Apple to Become a Bank?
Apple already offers financial services like Apple Pay, Apple Wallet and Apple Card. It is only right to expect that it may want to dive further into the financial sector and become your bank. Here are some reasons why it’s easier for Apple to become a financial institution.
1. Massive Amount of Unused Cash
Apple has billions of cash in hand that can be useful for developing the necessary banking expertise or for finance acquisitions of fintech. With Apple’s interest in becoming a full-stack bank, having this amount of cash can also help with satisfying the regulatory issues needed to be dealt with to become a banking system.
2. Strong Reputation and Loyal Customers
With almost around 2 billion active users around the world, Apple has already gained a strong reputation and a huge customer base. From iPhones or Macbooks and more, Apple has become a part of our lifestyle. By adding financial services to the iPhone, it can become an even integral part and retain customers by offering so much more to create barriers for customers to move to other hardware providers. Customers believe that Apple has a solid foundation and enough money to stay with them in the future and offer more innovative products and services.
3. Expertise in Security and Data Analytics
Apple has always been great at managing data. This builds faith that they have the ability and can take the same approach to manage money securely. Apple is already known to offer high security for personal information as well as for banking and payments. Security measures like Face ID or Touch ID offer biometric security and are already used for authorizing payments through Apple Card and Apple Pay.
4. Great Customer Experience
Apple knows what the customers want and is always prepared to deliver it. Traditional banking systems don’t offer a user-friendly interface for banking activities such as transfers and viewing transactions. It causes a lot of inconvenience to customers and impacts the customer experience negatively. Apple offers great experiences with user-friendly interfaces that can help attract customers and increase engagement with their banking platform. Customers can get a clearer view of the possible actions they can take.
5. Innovative Ways to Sell iPhones
Apple, just like all other huge technology companies, needs to constantly come up with new, great ideas. Getting into the financial industry can help the company sell more iPhones by adding new subscription services.
Apple is already a part of our everyday lives. But this billion-dollar company aims to become an even more integral part of our lives and entering the financial sector is just the perfect way to do so. It is highly possible since the company already has most of the necessary resources to become a bank.