Over the past ten years, innovations in technology have dramatically changed how each industry operates and communicates, and the banking and finance sector is no different. The most recent disruptive change was in payments, firstly with contactless cards
and now with the launch of contactless apps such as Apple Pay. As we see Apple move in on the finance space, the question on many people’s lips is, ‘Is the banking sector the next big thing for Apple?’
Apple is a hugely successful and respected brand across a range of sectors, from electronics products to the music industry. As a company, it is devoted to innovation, which means it is often the game-changer in the market, making it a very powerful company
in many different sectors. Apple Pay has seen widespread adoption across the UK starting with its implementation throughout London’s public transport and now it is available at countless shops and restaurants including Lidl, M&S and Pret.
The banks who are ahead of the curve have ensured they are compatible with the app, these include American Express, Santander and RBS. Additionally, virtual banks such as ING are future-proofing themselves and making sure they are on the cusp of technological
advancements to operate more effectively and appeal to more technically savvy or younger audiences.
Whilst many banks are now compatible with Apple Pay, if Apple does make the move into banking, should traditional banks with their decades of experience be worried? Recent research by uSwitch found that, almost a quarter (24%) of young people believe that
tech companies such as Google, Apple and Amazon could do a better job than a traditional bank in offering financial products.
Younger generations identify with Apple and trust the organisation across a range of sectors, including finance. Couple this together with the loss of customer trust in banking post the recession, younger people may be easily swayed to turn to the likes
of Apple and Google in terms of their finances. We’ve also seen a massive hike in younger people consuming more and more ‘traditional’ products and services online through consumer sites, and this will only continue to increase.
I believe the next 18 months will be very exciting for the banking industry and it will be interesting to monitor Apple’s next moves in the banking and finance space as Apple Pay picks up steam.