Tech giants of the world are supposedly taking up 40% of the $1.35 trillion in US financial services revenue from incumbent banks, per McKinsey.
Apple, Google and Amazon three of the largest tech companies are encroaching gradually on financial services, this according to experts puts a risk on current incumbents who would in turn need to invest largely in order to attract more customers to remain on top.
Apple, as a means of an additional revenue stream, has deepened its financial services and the company’s expertise would add a threat to legacy players. The platform-agnostic approach adopted by Google will ensure wide international penetration and position it as a leading hub with an unparalleled global reach beyond just consumer payments. Amazon too has set its sights on the financial sector. The company, which has laid blueprints in almost all sectors is certain to create a substantial effect in the financial sector.
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