Welcome to Apple Bank - your everyday Banking from Apple, NOT a Bank 🍎🏦; One of the biggest funding rounds in the decentralized finance sector's history & what it means for the future of DeFi 😳
FinTech is Eating the World, 17 October
Hey Everyone,
Happy Monday! Today’s issue is deeply focused on the monumental shifts happening in both financial technology and decentralized finance space, therefore, it has been dedicated to two huge stories. We’re going to look at Apple Bank (& how it’s slowly yet surely building towards giving your everyday banking from Apple, NOT your bank + why it should consider acquiring Goldman Sachs + 2 bonus reads), one of the biggest funding rounds in DeFi (& the Big, the Bad and the Ugly things + bonus read), not to mention 3 extra deep dives and lots of funding news. So let’s jump straight into the hot and exciting stuff:
Welcome to Apple Bank - your everyday Banking from Apple, NOT a Bank 🍎🏦
The breaking news🔥 Apple AAPL 0.00%↑, the global tech titan and most valuable company on the planet, just made yet another move to become more like a digital bank than a technology company 🏦
More on this 👉 The tech giant announced a new account for the Apple Card that will allow users to save and grow their rewards in a Savings account from Goldman Sachs GS 0.00%↑ (which is also the issuer of the Apple Card). Here’s all you need to know:
Apple Card users will be able to open a new Savings account and have their Daily Cash* (cash back that is deposited daily - rather than at the end of the month - to a user’s Apple Cash Card) automatically deposited into it. It will have no fees, no minimum deposits, and no minimum balance requirements. Also, users will soon be able to spend, send, and save Daily Cash directly from their wallets.
Apple Card users will be able to set up and manage Savings directly in their Apple Card wallet. Once users set up their Savings account, all future Daily Cash received will be automatically deposited into it, or they can choose to continue to have it added to an Apple Cash card in their wallet. Users can change their Daily Cash destination at any time.
To expand Savings even further, users can also deposit additional funds into their Savings account through a linked bank account or from their Apple Cash balance. Users can also withdraw funds at any time by transferring them to a linked bank account or to their Apple Cash card, with no fees.
Apple's announcement did not say when the savings account will be available, and didn't include an estimate for the interest rate it will offer but it most definitely should match whatever Goldman's Marcus savings account is offering, which currently sits at 2.35% APY. For the perspective, Wells Fargo WFC 0.00%↑, JPMorgan Chase JPM 0.00%↑, and Bank of America BAC 0.00%↑ offer saving accounts with just 0.01% APY 🥲
*Apple Card users automatically generate cash rewards each time the card is used for purchase. Cash back to holders ranges from 1% to 3%, with higher rates available for purchases of Apple products and other highlighted merchants. Some 3% reward merchants include Uber, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware.
Why does this matter? 🤔 The recent move is yet another stepping stone for Apple on its way to becoming the largest bank in the world. While it might not become a bank in the conventional sense of the term just yet, it’s clear that the tech heavyweight wants you to get your everyday banking from Apple, NOT your bank.
Here’s more on this, the recap of the current status of Apple Bank, why it should consider buying Goldman Sachs altogether + the takeaway:
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