How tech companies are taking financial market
The recent release of the Apple’s credit card has been a clear sign that the tech giants want to compete with the traditional financial institutions. The services like Apple Pay, Google Pay or Facebook Pay show that the companies that are best known for selling tech products, want to diversify the source of their income and provide easy to use and modern financial solutions. Their main advantage over traditional banks is an easy access to the best engineers and a good integration with their other services, which are already used by millions of customers all over the world. The above companies differ from each other a bit, however the main reason for their drift towards financial market is the same – a stagnation in the tech world. They all are well-known companies with a stable position in their market, which doesn’t seem to be developing that fast anymore. Moreover, none of these companies have released any revolutionary product recently and to satisfy their investors they had to come up with a new solution to guarantee growth.
up-to-date with the new technologies, but tend not to use credit.
As expected, the Apple’s competitors have promptly reacted to the Apple Card. For example, Google is rumoured to launch their transaction accounts with support of Citigroup and Stanford University. Soon, the term ‘Google account’ might change its meaning. Facebook, on the other hand, has enabled transactions between its users (right now available only in the United States).
The main concern that comes along this topic is the fact, that it is becoming easier and easier to let one company control all aspects of one’s live. The finances might be the most dangerous of these aspects.
1. Do you think that tech giants will try to get into other markets as well? If so, which ones?
2. Would you trust Facebook Pay enough to use it? Why/why not?
3. Do you think that fintech companies will completely replace traditional banks one day?
Sources:
1. https://www.forbes.com/consent/?toURL=https://www.forbes.com/advisor/credit-cards/reviews/the-apple-credit-card/
2. https://www.spidersweb.pl/2019/11/facebook-pay-platnosc-messenger.html
3. https://www.apple.com/apple-card/
4. https://www.wprost.pl/fintech/10269830/google-chce-byc-bankiem-stwierdzenie-konto-google-moze-zmienic-znaczenie.html
Picture sources:
https://pl.depositphotos.com/stock-photos/fintech.html?qview=105457874
https://www.apple.com/v/apple-card/b/images/overview/front_card__ldgn2gkgxrem_large.jpg
https://ocs-pl.oktawave.com/v1/AUTH_2887234e-384a-4873-8bc5-405211db13a2/spidersweb/2012/04/Apple-Google-Facebook.jpg
Comments
2. Yes, I trust it enough to use it. I believe that such big companies as Facebook will do their best to make it as secure as possible. The security of it gives them reliability, so they should be doing their best to ensure it.
3. Probably yes. We can see that there is such a trend that many banks shut down their departments and enable internet accounting. Technological companies have prepared infrastructure and specialists in this field, so they have supremacy over banks.
1. Most likely yes. There are a lot of market, from which you can make a lot of money and therefore, they will be entered one day. I do not have ideas though, which market they could possibly enter.
2. I guess every pay service, especially those created by tech giants need to be safe, simply because if it wasn't and they were to lose money not only theirs, but their clients' the whole company would collapse in seconds. Giant can't afford such mistakes and so I'd trust them.
3. Possibly yes, though afterall some kind of money will need to be stored and distributed some way, unless the entire world would go by cyber money instead of real ones.
In my opinion, they will try to capture as much of the market as possible. Perhaps soon we will see an advertisement for a new iPhone on a bottle of milk.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I rarely use Facebook at all, so I don't see any sense in this payment system.
3. Do you think that fintech companies will completely replace traditional banks one day?
I'm not sure about that. On the one hand, banks have been around for a long time, and I don't think they'll give up their share so easily. But on the other hand, it is quite possible that now the banks are some kind of monopolists, and such firms will be able to offer people much more favorable terms of financing without losses for themselves, which will be easy to use the banks ... not profitable.
I think that they will try to penetrate other markets. They are doing it right now. I think the day is not far off when these companies will launch mass production of cars for example. What Apple has been doing lately. Perhaps also this will be one of the spheres of life of mass consumption, similar to the release of clothing or food products for example. In general, in fact, as you said, the race of corporations leads to the fact that all aspects of our lives will be affected by their goods.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I think that there is no reason to doubt their service, even if it is banking. It seems to me that the moments related to cybersecurity on Facebook are no worse than in any bank in the world. They can also provide good service. Considering the scale of the company and its financial capabilities, I think they would do well with this. But there is a question with customer confidence. Since Facebook has repeatedly suffered data leaks, people will be wary of this.
3. Do you think that fintech companies will completely replace traditional banks one day?
Theoretically, they have every opportunity to replace traditional banks. But I don’t think that the strategies of their companies intersect with this idea. But they are likely to provide various modern services for the banking sector. The world community would have reacted ambiguously if one of these companies had conquered the banking market.
2. To tell the truth I am not very familiar with Facebook Pay. But I think people would use it, even though they had problems with security. But I beg them to create a separate application for it because the mobile Facebook app is a 'god' application, everything is there and a lot of the features are useless for me.
3. I am not sure about that. A few years ago, a lot of people said that cryptocurrency will substitute traditional banking systems. So, I think banks should cooperate with tech companies like Google and Apple to be alive and make our life easier.
Of course, the stake in the banking industry is huge. I am sure that more and more technology giants will be interested in it to get at least a piece of this cake.
2. Would you trust Facebook Pay enough to use it? Why/why not?
Looking at how many people are fooled by the scams spread on Facebook, I will never decide to combine Facebook with my finances.
3. Do you think that fintech companies will completely replace traditional banks one day?
The fact that they are created more and more and are more convenient to use favors their spread. I think, however, that we will never trust them with the confidence we place in traditional banks.
2. Yes, I would trust because I equally trust solutions such as Google Pay or Apple Pay. The largest technology companies have great potential in making a secure payment solution.
3. Yes. In future I thnik there will be only digital currencies or cyber money so fintech companies will be the best in this industry of digital money.
1. Do you think that tech giants will try to get into other markets as well? If so, which ones?
Of course, they always aim to devour the world.
2. Would you trust Facebook Pay enough to use it? Why/why not?
Not sure. For now I will stick to traditional banks.
3. Do you think that fintech companies will completely replace traditional banks one day?
Companies will replace everything eventually, so, yes.
2. I wouldn't trust Facebook Pay just because I generally don't like Facebook, their policies and what they doing. I'm quite focused on keeping my privacy as much as I can so I don't like that kind of services especially connected with money. I use only my bank account and it's not connected to anything.
3. Hard to say if they completely replace traditional banks but they definitelly will get more popularity and power in the future
2. I wouldn't. Actually I don't need it as I do not use facebook even rare, and facebook technologies from my perspective are obsolete and not used properly.
3. We apporoach the time when huge technologicall corporations will control everything and everywhere. They earn more money than some countries, they are lobbying their own laws, so it's a matter of time when they'll become powerful enough to replace governments and, of course, banks
I think that some of those tech giants are reaching other markets even right now. Most cliché giant is Google, from search engine to driverless cars. And google is not alone with this approach. I think it is or will be in near future pretty common.
2. Would you trust Facebook Pay enough to use it? Why/why not?
No. First of all, I am happy with my payment experience as it is right now, so why would I risk giving another company my personal data with credit cards? Imagine the situation, where Facebook gets hacked and all the data is being leaked. Hackers would use my credit card which would impact negatively on my account balance.
3. Do you think that fintech companies will completely replace traditional banks one day?
I cannot say for sure that they will ‘replace’ traditional banks one day, because those are really impactful institutions that will not allow that easily to be taken out of the market. But for sure I can make a thesis, that they will be more and more popular in the future.
Yes,definitally because our word is beeing converted into digital and tech giants will have power to control other markets.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I dont like the idea of having social media connected to payment methods from my banking account. I rather like to connect to these 2 things seperatelly for security.
3. Do you think that fintech companies will completely replace traditional banks one day? Hard to say but i think it will change over the years and traditional banking will be in danger.
Of course I think that tech giants will try to get into other markets, and I think that they will probably very quickly dominate them. They will probably start with banking and transportation, and real estate.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I wouldn’t trust Facebook Pay, I think that facebook already know too much about me, and I would like to keep my expenses unknown to them.
3. Do you think that fintech companies will completely replace traditional banks one day?
I don’t think that they will replace traditional banks, but I think that they will be a huge competition in some financial areas.
Yes, I think so. There are many other markets which might actually boost in value with a help from any tech giant. Also, medical sector is using more and more advanced technology every year. Also, this kind of equipment is very expensive and therefore might be very profitable.
2. Would you trust Facebook Pay enough to use it? Why/why not?
No, I don’t think so. I am at that point when I don’t really trust Facebook. The company had a few affairs which were very bad for press or public opinion which resulted in a lack of trust from my side. Also the way they explained everything at that time and how they explained it was sometimes hilarious.
3. Do you think that fintech companies will completely replace traditional banks one day?
No, I don’t think so. Banks are still huge companies around the world but I think that they will be forced to work closer with those fintech companies.
I think that technology giants will also try to reach other markets. Everything is now connected with technology. It's a matter of time before they take over other markets. I think that now all stores will be well attacked: Grocery, clothing or cosmetics. Magic mirrors and cameras counting the number of people in the queue. These projects are already being implemented on the market.
2. Would you trust Facebook Pay enough to use it? Why / why not?
I trust that Facebook Pay is enough to use it. I think Facebook banking security is very good. It may be even better than at some banks in the world. They can also provide good service. The company size and code purity guarantee this.
3. Do you think that fintech companies will completely replace traditional banks one day?
I think one-day fintech companies will completely replace traditional banks. This is because the new generation does not need to use banks. Big business clients are also moving away from going to these institutions. I have not been to the bank in private last year. I make all transfers and deposits by phone.
Unfortunately, I can't give a definite answer, but in my opinion such big companies never stop, as the saying goes appetite comes with eating. Unfortunately, I am not able to indicate the direction of their further development. I can only guess that their next step will be the real estate market.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I think I will never be able to trust companies like facebook. There are already many scandals and under-the-counter things came out into the open. Otherwise I would be too dependent on one company. I think that such companies are not reliable firms.
3. Do you think that fintech companies will completely replace traditional banks one day?
I think that traditional banks will not be replaced by fintech companies, in my opinion the only option is something like an act of combining two companies in order to form a new one. I think that banks have a too strong position in the world and if there is no unbelievable rebellion nothing will be able to change it.
2. Yes, I would. I see no reason not to trust him.
3. I think that banks and fintech will end their evolution in the same place, become the same and traditional banks will cease to exist.
2. Definitely not, I don’t trust this kind of companies. In the official bank industry there is someone who is responsible for our money and it’s written in law.
3. If they managed to convince enough people to use it, then for sure yes. Although, it would need to be regulated by law so that the people would not be afraid of using it. I think people might get more convinced to such ideas if they saw how the companies would behave during, for example, bankruptcy problems.
2. I believe that Facebook Pay is not enough to use it. You have to remember how google pay or apple pay applications work. They only give you the option of pinning your bank card to your account and using it without much trouble on related applications or mobile devices, but they don't give you the option of opening an account.
3. I believe that fintech companies will not replace Banks, because many people after the Amber Gold scandal are afraid for their money, therefore Banks will always be considered a safer option.
Yes, for instance, N26 and Revolut has introduced a very shinny way of online banking and then what on the article has described "Apple Card" or another fintechs like Monese, Transferwise, and many following has been showed up suddenly. The tech market is just like that. easy to copy.
2. Would you trust Facebook Pay enough to use it? Why/why not?
That's not actually being trusted what you are using, if you have your client/friend/family using this service you have to get one too. To connect your relation either in bank solution or conversational, this is like what bitcoin is, people with no knowledge was getting into because it was a demand and people were ready to get it without trusting it.
3. Do you think that fintech companies will completely replace traditional banks one day?
yeap. I even closed my local bank since I have everything under my phone.
Yeah. Companies want to grow every day, and since technology giants are the best in their fields, it is normal for them to move on to other areas to earn more. For example, Facebook's live broadcast feature, such as playing games
2.Would you trust Facebook Pay enough to use it? Why/why not?
I can trust it because it's a big company. They're gonna get their own money or something soon. I think we'il use their money in the future
3.Do you think that fintech companies will completely replace traditional banks one day?
Probably. Because even now we use companies like banks with intermediaries like bitcoin.
2)No, I wouldn't trust Facebook to store anything, much less giving them access to data about mine financial transactions. And I even dare to go a lot further and say that if you think this is a good idea, you either have absolutely no idea on haw abysmally badly Facebook is handling your data, or you are dreaming of getting some severe troubles in your life.
3)That is something that is so far from my area of expertise that I'm afraid even to guess. The best I can do here is to throw a coin in the air and see how it falls...
I think they already trying to get into various markets, and it's quite successful.
The obvious example is Facebook, they are integrating all market strategies in very profitable way.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I won't, as IT student and just simple new reader man I can say it's a big mistake to trust facebook any details of your card or personal info. Because they are used by 3rd persons or just leaked in very specific way.
3. Do you think that fintech companies will completely replace traditional banks one day?
One day it might happen but not early that 3-4 decades. Most of functions already done by fintech companies so the probability that it will happen is quite high
As I remember Chinese tech giant Xiamo is creating all sort of things, from coat to toilets and toilet papers. So, I think they are doing it right now, but some of them are doing this slowly and some of them doing it quickly and massively.
2. Would you trust Facebook Pay enough to use it? Why/why not?
Of course no. Facebook had too many breaches. All their systems are too unreliable to use them. WhatsApp regularly allows security breaches, Facebook itself has an enormous problem with security, so no way I will use Facebook Pay or believe them.
3. Do you think that fintech companies will completely replace traditional banks one day?
I think yes. I know there is this tech app, which is called Revolute, which is like an online bank with all the features of the real one. I used to try it some time ago and I liked it.
I think they will and should do that. Diversifying your sources of income is important in survival of any company. Examples of companies like KODAK have taught us that technology is constantly changing and your products can become redundant in a matter of few months. Definitely companies like Amazon, Google, Apple or Samsung will try to get into other markets for the reasons I mentioned.
2. Would you trust Facebook Pay enough to use it? Why/why not?
I wouldn't trust them. Overall I have mixed feelings about Facebook as a company. They didn't gain my trust because of all those situations with our data being used in wrong way, etc. Cambridge Analytica being one of the examples.
3. Do you think that fintech companies will completely replace traditional banks one day?
I think that those who don't adapt will be replaced. However, banks are also trying to step up in terms of online payments. In my opinion traditional banks will lose some % of their market share but if they adapt then they will survive.