Apple Makes a BIG Play into Finance with Open Banking integration 🇬🇧🍏; Affirm’s new strategy to boost profitability 📈; The Dawn of AI in Central Banking: ECB starts testing ChatGPT-style AI 🏦🦾
FinTech is Eating the World, 28 September
Hey Everyone,
Happy Thursday! Today’s issue is super interesting as we’re looking at Apple which just made a BIG move into Finance with Open Banking integration (what it’s all about & where’s the value + how it plays in building Apple Finance Empire), Affirm which has a new strategy to boost profitability (it might make sense but I’m more bullish on Klarna’s strategy nobody’s talking about), and ECB that started testing ChatGPT-style AI marking the dawn of AI in Central Banking (what it’s all about & whether it makes sense + a bonus read on how Gen AI is making finance autonomous). Let’s jump straight into the cool stuff 🌶
Apple Makes a BIG Play into Finance with Open Banking integration 🇬🇧🍏
The BIG launch 🚀 Tech titan Apple AAPL 0.00%↑ has softly launched a new feature for iPhone users in the UK that allows them to view their current account balances and transaction histories directly within the Apple Wallet.
This is a big and solid move from Apple showing the technology giant’s growing ambition in financial services.
Let’s take a look.
More on this 👉 This new feature is made possible through open banking APIs from major UK banks including HSBC, Barclays, Lloyds, RBS, Monzo, and Starling. Notice there’s no Revolut here? Oh wait, they aren’t a bank in the UK… 🤭
ICYMI: UK banking licence unlikely? Revolut's latest 2022 accounts delayed 🤷♂️
With this new integration, iPhone users can now see their real-time account balances alongside their Apple Pay cards in the Wallet app. When making an Apple Pay purchase, they will also be able to view their balances, providing greater visibility into their finances at the point of payment.
Finance at stake 🍎 While a current account balance feature may seem simple on the surface, this launch signals a major strategic play by Apple. It represents one of the first implementations of open banking by a major consumer tech platform worldwide. It is also the first time Apple has launched a new financial feature in the UK before the US. BTW, this is thanks to the acquisition of British OB FinTech Credit Kudos.
ICYMI: Apple takes another step towards becoming a bank 🍏🏦
More importantly, by tapping into open banking, Apple can unlock powerful financial insights and personalization opportunities. The tech heavyweight could then use transaction data and machine learning to provide tailored recommendations on which payment card to use based on rewards programs or foreign transaction fees.
Apple could also leverage geolocation to prompt users to pay with certain cards when near relevant merchants.
✈️ THE TAKEAWAY
Looking ahead 👀 Many don’t realize how big of a move this is. At the core, the OB integration essentially turns the Apple Wallet into a personal finance management (PFM) tool. With these foundations, Apple could build on this further by using data to provide spending insights and budget notifications in real-time at the point of purchase. This could help consumers make better financial decisions while also increasing customer engagement and loyalty. Looking at the big picture, the launch yet again shows Apple's growing ambition in financial services. It is obvious now that Apple is gradually building a financial ecosystem and positioning itself as a finance platform, and one of the biggest challenger banks in the world (without actually needing to become a bank). With over 1 billion iPhone users globally, Apple's every next move in open banking, finance, and payments will have huge implications. The Biggest FinTech company in the world is gaining more and more momentum.
ICYMI: Apple should go into stock trading in 2025 👀💸 [+ more dives into Apple’s Finance Empire]