Big Tech takes aim at the low-profit retail-banking industry

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 92%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The new initiatives from Big Tech marks the drastic acceleration of a trend that could reshape the finance industry

Web Summit in Lisbon each year is Woodstock for geeks. Over three days in November, 70,000 tech buffs and investors gather on grounds the size of a small town. Rock stars, like Wikipedia’s boss or Huawei’s chairman, parade on the main stage. Elsewhere people queue for-printed jeans or watch startups pitch from a boxing ring. Money managers announce dazzling funding rounds. Panellists predict a cashless future while gazing into a huge crystal ball.

What these systems share is their limited success. After eight years Google Pay has just 12m users in America, a market of 130m households. Only 14% of the country’s households with credit cards use Apple Pay at least twice a month. In October the number of customers who used Amazon Pay was just 5% of the number who used PayPal, says Second Measure, a data firm. This contrasts with the explosive growth of WeChat Pay and Alipay, China’s “super-apps”.

At bottom, a bank is a balance-sheet, a factory that turns capital into financial products and a sales force, says Dave Birch of Consult Hyperion, a consultancy. The first two are heavily regulated, and Big Tech is uninterested. That is why the giants have turned to banks to do the tedious bits. Apple’s card is issued by Goldman Sachs, and Amazon’s ones by Chase, Synchrony and American Express. Google’s accounts are backed by Citi and a banking union.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Big Tech takes aim at the low-profit retail-banking industryTech giants are already good at inferring consumers’ preferences from browsing patterns and location. Spending patterns are more useful
Source: TheEconomist - 🏆 6. / 92 Read more »

Morgan Stanley's wealth head Andy Saperstein on wealth tech training - Business InsiderMorgan Stanley's greener employees are teaching experienced financial advisers how to use its WealthDesk tools. It's a way to help out —and potentially rise through the ranks.
Source: BusinessInsider - 🏆 729. / 51 Read more »