The roundup: Big Tech firms have faced a tough couple of weeks, with valuations plunging and a raft of layoffs. Nevertheless, many are still proceeding with their push toward offering financial services. If these firms can weather the economic storm, the products they launch still have potential to shake up the industry.
Here are Big Tech firms’ latest moves in banking and finance.
The bottom line: Apple’s recent savings feature and payments growth highlight its retail banking ambitions as it edges closer to plans for Breakout, a suite of financial services gathered under one roof.
The bottom line: Much like Apple, Amazon is focusing on growth through partnerships to cut costs and ease the regulatory hassle of building products from the ground up. It’s been more cautious than other Big Tech firms in launching financial services products, but its brand is hugely popular and its platform is already associated with ecommerce. If Amazon can successfully embed financial products that improve the user experience into its platform, the convenience will help it attract customers.
The bottom line: Google has a huge, engaged audience from which it could generate more revenues with banking, payments, and insurance features. Expect it to keep pushing into banking by bolting on new products to existing services through routes like embedded finance.
The bottom line: Musk wants to turn Twitter into X, a super app modeled on China’s WeChat that would offer money market accounts, payments, and shopping. But the project will face intense regulatory scrutiny and the company first has to deal with adverse publicity and defecting users.