Is Apple A Threat to Banks?

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Apple recently announced its latest financial product in partnership with Goldman Sachs — a savings account designed for Apple Card users. The high-yield savings account comes with a 4.15% interest rate and comes with no fees and no minimum deposit or minimum balance requirements. Plus, it has some extra benefits for users like automatic deposits of Daily Cash earned with the Apple Card and the ability to make an instant transfer to your Apple Wallet.

This is considerably higher than the average US savings account rate of 0.37 per cent. It also beats competitors such as American Express which is offering 3.75 per cent and Goldman’s savings account that operates under the Marcus brand, which offers 3.9 per cent.

The launch comes as more established banks, in particular regional and smaller lenders, are under growing pressure to offer better savings rates for depositors to stop them transferring cash to higher-yielding products such as money market funds, which have offered better returns in line with rising interest rates.

In today's video we ask, Is Apple a threat to banks?

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"patagonia fleece" added as characteristics for "Neo Bank" hahaha @4:59 . nice photoshop skills patrick!

HerrSchaft
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Your down-to-earth, objective and no-hype presentations are such a blessing.

Thank you so much.

Also, it's very entertaining.

nosac
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this guy's sense of humor is so awesome!! i was just listening as he described the information on this subject and then at 10:27 he just drops a j joke on Jack Dorsey, it's just subtle enough that if you're not paying attention you won't notice it. top-notch content!!

BrianShh
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I'm looking forward to the day when there's only three companies in the world: Amazon, Apple and Alphabet. It'll reduce the wasted space on the stock market, make calculating the performance of the S&P 3 easy, and save time making decisions. This step towards the banking industry is a great leap towards my dream of serfdom under the three CEO's.

mikestanmore
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Apple is finally on its way to transforming itself from a tech company into a true conglomerate.
Probably the natural path for any successful company.
I'm looking forward to paying for my Icoffee with my Icard then getting into my Apple car on the way to work where Iwhip foxcone employees as a professional motivational enhancement therapist.

neuemilch
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Hahahahaha Rasputin next to the square logo was comedy - old jack beard

ralfyrules
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The Square/JD image 😂. Just want yo say that the humor in these higly densed informative videos works sooo well. I lolled way too hard. Love it. ❤

ohkee
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I think all that will happen is Apple will end up as Goldman Sach's largest shareholder and we'll drop the fascad that Apple's banking is separate from Goldman's.

samsonsoturian
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I dropped my drink at 06:25 when you mentioned "It might be difficult to leave" while you showed a picture of Hotel California.
"You can check out anytime you want, but you can never leave" are the most controversial lyrics of any song ever...
Apple, being unable to invent a new breakthrough device after the iPhone, is trying to invent the lifestyle bank.
Thank you for this video Dr. Boyle...

rayoflight
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While at JPM it was well known their biggest fear was that their largest tech clients evolving into banks - offering retail products (issuing bank) as well as wholesale merchant services (acquiring bank) and treasury products. JPM has no near peer - outside of their top clients.

frederickmiles
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Btw, Revolut started off as a no fee money exchange service (as opposed 2% by Visa), not as a low fee transfer service

shmoola
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Patrick with yet another drop of timely, market-changing knowledge.

barbarosozturk
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6:18 You can check out anytime you like but you can never leave 😂

fanjin
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Apple is the last place I would put all my money, banks are bad enough but a company that I can’t go visit physically and talk to a person face to face is a non starter for me

Greenhead
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The hotel california joke is GOLD =)))

binhify
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Thanks for the great quality content as always. I’m curious to hear your thoughts on the Robinhood gold 4.4% apy offering. Especially how it compares to the new apple offering.

Deez-Master
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Bet on Apple dropping the rate once they get enough customers signed up

eddiegill
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Kind of hilarious that bank's expected to have a windfall when interest rates rise, only to find that they are instead faced with a crisis. I'll bet there were tons of intelligent people at banks who saw this coming but simply had no incentive to try and do anything about it.

grim
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I dont have money to invest and do not work in the finance industry, barely any savings. However, the value and entertainment I get from this chanel is phenomenal.

luciancaracy
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13:48 Patrick doesn’t get more savage than this

finance-fun-facts