Apple and Google join fintech in setting “new standards" in banking customer experience, says report

Apple and other big tech firms are joining the likes of Monzo and Starling Bank in setting “new standards" in customer experience in banking, says a new report.

The report by GP Bullhound, the tech investment and advisory firm, offers insights into some of the latest fintech trends.

One trend it pinpoints is big tech, joining fintech, and parking its tanks on the lawns of legacy financial institutions.

The report says that big tech posed an “ominous threat” to legacy banks as big tech companies intended to marry best-in-class digital banking user experience with instance scale.

Currently, Apple offers P2P payments, a Wallet app, a credit card and the ability for merchants to accept payments from an iPhone.

Last month, it acquired UK fintech Credit Kudos a UK startup that uses bank data to help businesses to make lending decisions for a rumoured  $150m.

The tech giants are also causing a “stir” in banking boardrooms over its “Breakout” plans, the report says.

Apple’s project “Breakout” would see it develop its own payment processing technology and infrastructure for future financial products- including payments processing, loan risk assessments, fraud analysis, credit checks and customer service, without the aid of external partners.

Other big tech players are similar making moves into financial services, with some encouraging problems.

Google, for example, has abandoned plans to offer its Google Plex checking account, while Meta’s cryptocurrency, formerly known as Libra, appears to be heading for the scrap heap amid opposition from regulators.

The report says that, overall, the inroads made by big tech into financial services are a good thing as they will help “set new standards in customer experience and disrupt the status quo for legacy banks”.