With the evolution of technology, advancement in financial sectors has gained profits from the transition. Tech giants are set to grab up to 40% of the $1.35 trillion in US financial services revenue from incumbent banks, per McKinsey.
According to Business Insider, three of the largest US tech companies including Apple, Google, and Amazon are particularly encroaching on financial services and threatening incumbents with their size and ability to attract massive, loyal user bases.
It was reported that Apple is deepening its financial services play as a means of invigorating revenue, and its expertise could make it a legitimate threat to legacy players.
Google’s platform-agnostic approach, wide international penetration, and top talent position it as a hub with an unrivaled global reach beyond just consumer payments. And Amazon, which has eaten up market share in every industry it’s touched, and now has its sights on financial services, could swiftly undercut legacy players.
Business Insider reported that, In the tech Companies Financial Services report, Business Insider Intelligence will examine the moves that Apple, Google, and Amazon are making to gain a larger foothold in the global financial services industry. We will then detail each tech company’s threat to incumbents and outline potential next steps based on their existing moves in the financial services sphere.