Silicon Valley has already consumed a plethora of industries, from newspaper and camera businesses to flashlights and watches. Now, Big Tech seems to be turning its focus to banking. But do not expect Google or Facebook to open their banks. As per the experts, this abrupt play for fiscal services is about your loyalty, not their rivalry.
You cannot escape stories of tech firms dipping their hands into banking. In 2019, Google disclosed that it is operating on a check-clearing service for next year, and Facebook launched its own payments service again. Apple rolled out a credit card in association with Marcus digital bank by Goldman Sachs, as well. As sales of hardware and ad income fall, these firms can see banking as one more method to spin money.
Alex Drummond is co-author of the 2019 Global Payments report and Partner and MD at Boston Consulting Group. He thinks that Wall Street is secure from Silicon Valley, forever and now, and that the tech sector’s jumps into banking are just one more way to keep us employing their features and services. Apple Card, for example, is employed to “assist make Apple Pay stronger,” instead of stealing Goldman’s pie.
On a related note, the Apple Card earlier was below fire after allegations that Goldman Sachs, the bank responsible for the program, has been discriminatory against females in its department of credit lines. The New York Department of Financial Services started a probe into the claims, and Goldman Sachs claims it will re-check credit moves for those whose lines are less than anticipated.
The outcry in opposition to the Apple Card started when David Heinemeier Hansson (Ruby on Rails creator and Basecamp founder) blamed the bank of sexism after he was provided 20 times the limit for credit as compared to his wife was, although they file joint tax returns.
With a Bachelor’s Degree in Computer Science, Darryl has bagged total experience of approximately 4 years in the field of Technology. He had started his career as a journalist. At present, he serves as the Team Lead in the Technology Section of Global Industry News. He has an eye for detail, which helps him to present any news report with precision. Writing news pieces on diverse topics including artificial intelligence, IoT, virtual reality & augmented reality, and intelligent apps is his mastery. At the same time, his eye-catching personality and convincing communication skills help him to be the most popular personality on the floor.