Apple’s “Project Breakout”: Do banks really need to worry?

Apple’s quest for marketplace opportunities has not stopped and it is understood that the big tech is developing its own payment processing technology and infrastructure for financial products. With the autonomy created by its market share, the company is reducing its reliance on outside partners for financial services including payment processing, risk assessment for lending, fraud analysis, credit checks and dispute management.

Hang on, but banks already offer these and much more! Isn’t Apple reinventing the wheel in financial services?

With no affinity to one single financial service provider, consumers have divulged a mountain of data to the big tech, good enough for them to offer bespoke services that traverse consumers’ lifestyle – from music, to food to financial services!

Banks are feeling the heat already, with Apple encroaching their comfort zone. Apple is building on an already strong lineup of Apple Card, Apple Pay and wallet, they’re also focusing on hardware subscription services allowing iPhone users to embark on monthly payment plans. The company has left no stone unturned in the BNPL space too and is working with Affirm and Goldman Sachs.

The Apple iPod gained popularity not because of better music quality but because it was designed from a customer viewpoint – portability, a dazzling look and price. It’s time that banks also offer products and services that are designed with the customer in mind – whether it is payments, account opening, lending or any other services that they provide!