editorial
Apple, one of the largest Fintech companies in the world, has plans to expand further by adding investments and trading to its offerings. According to a recent report by CNBC, Apple was in talks with Goldman Sachs to introduce stock trading. However, the plans were put on hold due to concerns about the market downturn.
The report suggests that the decision to pause the introduction of stock trading was due to fears of a user backlash if people lost money in the stock market using an Apple product. However, this reasoning seems questionable given that investors can make money when markets go up and down. With its large user base and successful banking features like Apple Savings, now would be the ideal time for Apple to accelerate its financial services, not slow down.
It is possible that Goldman Sachs, having faced challenges in offering consumer financial services, became hesitant about partnering with Apple. While the potential for using technology to scale services for the mass affluent was accurate, Goldman’s execution and commitment were lacking. CEO David Solomon feared for his job and backed off on consumer Fintech, while the bank’s more traditional operations suffered due to a challenging economy. This hesitation and fear of disruptive innovation likely contributed to the decision to pause the stock trading plans.
However, it is highly likely that Apple will still offer stock trading in the future. They may choose to develop the capability in-house, similar to their successful streaming business, or they may partner with a broker-dealer. Acquiring an already established broker seems unlikely as Apple typically tries to avoid culture clashes that can arise from big acquisitions.
In conclusion, Apple is expected to continue expanding its financial services in the coming years, including stock trading. Despite the temporary pause, the company’s strong position in the market and its focus on innovation make it highly likely that they will pursue this opportunity.
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