McKinsey believes that the technology giant will account for 40% of the existing 1.35 trillion US financial services revenue. The three largest U.S. technology companies-Apple, Google and Amazon-in particular are eating away at financial services and threatening the size and capabilities of their existing businesses to attract a large and loyal user base.
Business Insider Information
Apple Inc. is deepening its financial services business to increase revenue, and its expertise could make it a legitimate threat to traditional players. Google ’s platform-independent approach, extensive international penetration and top talents position it as a hub, not only with consumer payment services, but also with unparalleled global influence. Amazon (which has swallowed up market share in each of the industries it's involved in, and now has its sights on financial services), could quickly weaken traditional players.
In of Financial Services Technology Company The report states that Business Insider Intelligence will look at steps Apple, Google and Amazon have taken to gain a bigger foothold in the global financial services industry. We then detail the threats each tech company poses to incumbents and outline potential next steps based on their current moves in the financial services space.
The companies mentioned in the report include: Apple, Amazon, Google, Goldman Sachs, Mastercard, Barclays, Citi, Chase Bank, Capital One, Paytm and PhonePe.
Here are some of the key elements of the report:
- Apple's expertise in consumer-facing technology products makes it a legitimate threat to traditional vendors. Its next move may be a debit card or a PFM application, both of which will be tightly integrated with their existing products.
- Google's funding and business services make up an unparalleled payment center worldwide. Google can seek global expansion by modifying its products in other markets such as India, pursuing Europe and even researching digital remittances.
- Amazon is a professional disruptor, and its next target is the financial services industry. Amazon can develop checking and savings accounts, introduce Amazon Pay in stores, and white label its Amazon Go store technology to deepen its financial services coverage.
- An overview of the threats Apple, Amazon and Google pose to traditional financial institutions.
- Identify the strengths, weaknesses, opportunities, and threats of each technology giant, which will further develop into financial services.
- Discuss each company's move in financial services and their expected next steps in the field.
Interested in getting the full report? Here's how to access permissions: