An article in The West Australian contemplates the success that Apple, Google, Amazon and other globally recognized tech-firms might have if they invested in providing banking services. Not just mobile payments or prepaid or merchant check out solutions, but core deposit taking and loan underwriting and everything else needed to manage a consumer’s or businesses’ day- to- day financial interactions:
Australian Prudential Regulation Authority chairman Wayne Byres says there’s a ready-made Australian market for the likes of Apple and Google should the US tech giants expand into the financial services industry.
“Financial services ultimately is an industry that’s built on trust and if you think about the next generation that’s coming through, certainly when I think about my kids, the brands they trust – Apple, Google – it’s the technology brands,” Mr. Byres said on Monday.
This resonates with the activity in the U.S. that is occurring with the new Special Purpose National Bank charter for fintech. The OCC revealed more details about that charter last week. You can find the copy of Evaluating Charter Applications From Financial Technology Companies here. One of the many interesting aspects of this charter is the capital requirements required. They are significant enough that most, newer fintech company could never think about pursuing this type of charter. It would be no problem, however for the likes of Apple, Google or Amazon.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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