Apple may have the hottest stock, the coolest tech and the biggest cash pile in history, but consumers would still be wary of switching their bank accounts to a new model iBank.
Q: Would you consider buying a [high-street-bank] branded tablet?
A: Not on your life. Not even ironically
Interesting. Although, you could make the argument that anyone with an iTunes account that has a positive value, is already banking with Apple.
Let's ask the question a slightly different way. Would you buy a bank product through an iTunes store? Or would you make a payment using an iTunes account linked to a iPhone wallet?
The answers might be very different.
Agreed Brett. Full service banking might not be around the corner for Apple, but, as per our recent discussion on the related blog post on here, I think payments (call it iPay) could still prove very disruptive to banking's natural payments ecosystem. It
might not happen right away but certainly if Apple can create a powerful (and secure) user experience around payments, perhaps the question of full-service banking is irrelevant. As you well know, the bank of the future probably does not look like the bank
of the present!
Darren, you have to be careful iPay is an existing brand owned by Planet Payment - proof that Apple don't own everything "i".
Good catch Nick. I don't know what they would call it but my guess is it would have an 'i' in front of it. Also, with $98 bn in cash, probably if they wanted to use the trademarked term 'iPay', they could come to an agreement with the owners of it. Much
the same as they did with the company that previously owned 'iPad'.
"Would you buy a bank product through an iTunes store?" Yes, if banks dumbened down their products to match an average iTunes SKU's complexity. On second thoughts, in that case, I wouldn't need that product anyway and won't buy it from anywhere.
"Or would you make a payment using an iTunes account linked to a iPhone wallet?". Yes, for products priced similar to an average iTunes SKU's. But, then I could do the same with Boku or Zong or PayPal or Google Wallet (the Google Play one, not the NFC one),
so why Apple?
Regardless of the answer, I'd continue to be banking with my bank that issued my credit card, not Apple.
In response to finextra critique of this press release
This is one in a series of releases highlighting a large study KAE have conducted across the US and Europe to explore the capacity of the Apple brand to extend into new markets. Financial Services, being just one category we explored. We feel 1 in 10 consumers
is a huge number and supports the headline.
We do not believe Apple’s ability to command the consideration of 10%
of consumers on entry into banking (where they have zero pedigree) to be of minor relevance.
Consumers were presented with a range of differing brands to
consider. Only 1 other brand showed significant appeal for banking services. A brand not listed in your commentary. We will be making another announcement shortly on this.
We clearly stated a move into Banking is unlikely. The intent
of releasing highlights from our study is to provoke debate around how Apple has created such appeal and trust.
One key statistic which you have omitted from your commentary
is that over 40% of Apple customers would consider banking with Apple. This includes those who own a single low cost device such as an iPod (where their involvement and exposure to the wider Apple ‘experience’ could be considered lower). This highlights the
level of trust in the brand is huge and consumers do see a fit for Apple.
The question I believe is of more relevance to the Financial
Services industry is why Apple is able to transcend its own categories and
enter into a seemingly unrelated area? I suggest a close examination of how Apple is able to design consistently rewarding experiences across devices, software, and retail.
Apple has a range of options open to it around payments.
Naturally it needs to own the payment experience. Its portfolio and ecosystem model creates pressures to design additional consumer benefits for owning more devices and consuming more content. Expect to see innovations around payments which provide user-to-user
benefits only accessible to Apple device owners, on the phone, on the tablet, and in the living room…
Lee Powney, CCO, KAE
In 2000 at Interpay we used the name i-pay for e-commerce payments via Maestro, MasterCard and VISA SET. SET whas the standard for Secure Electronic Transactions based on PKI connectivity between merchant, consumer and gateway. Extremely secure as nobody
managed to install the certificats at that time.... To complex and not usercentric.
With iTunes Apple could start facilitating secure remote mobile payments for other e-commerce sites or Apple Stores, Apple resellers, etc.
Basic 100-120K Euro - 250K Euro OTE - NO CEILINGCommutable to Paris
© Finextra Research 2014