The recent news from Apple about its savings account offering a 4.15% yield for customers who keep their money there has generated a lot of discussion in the financial market. In fact, this is a "white-label" partnership with Goldman Sachs, which is considered the most powerful bank in the world. This offer allows customers to withdraw their money from traditional banks and place it in Apple for a much more advantageous return.
Apple’s banking venture threatens traditional banks
Large American banks such as JP Morgan Chase, Bank of America, Wells Fargo, and Citi offer very low interest rates, usually below 0.5% per year, which does not keep up with inflation. Official inflation in the US is around 5%, but real inflation is even higher. With Apple paying 4.15%, there is still a significant difference, even with American treasuries paying 5% per year.
However, the big problem is that people trust Apple much more than any bank brand. Trust is a crucial aspect in the banking business. If customers migrate to Apple’s “bank,” it could represent a significant threat to traditional banks, which already operate with tight profit margins.
Although the future of this Apple bank is uncertain, many analysts are concerned about the implications it may have on the American financial market. Will Apple succeed in becoming a large financial institution and changing the financial market as we know it? Or will this bank be just a passing fad, like Nubank? Only time will tell.