Finance Monthly April 2019 Edition

10 www.finance-monthly.com NEWS - MONTHLY ROUND-UP THE MONTHLY ROUND-UP Apple has announced plans to launch its own credit card - Apple Card - which will be available in the US this sum- mer. The card will be accom- panied by a digital app, which will provide many similar benefits and features to chal- lenger brands like Revolut and Monzo, including stats and feedback on purchases and 2% daily cash back. Jo Howes, Commercial Di- rector at digital banking soft- ware provider CREALOGIX, commented: “Apple’s announcement that it is to launch its own credit card – Apple Card – comes as no surprise to many in the banking industry. It was only going to be a matter of time before one of the major tech giants got involved in the banking sector, as challenger brands have already dem- onstrated that it is possible to grow quickly in this space from a standing start. “Like challenger banks, Apple has the advantage of being unburdened by legacy code or the cost of maintaining physical branches. However, unlike FinTech startups, Ap- ple can deploy significant financial and technical re- sources from the very start and tap into an enormous existing customer base. “Banks need to be wary of other major tech giants fol- lowing suit, and it would not be surprising if Amazon were the next tech giant to enter the banking market. In fact, a study last year showed that 65% of Amazon Prime subscribers would try a free online bank account offered by Amazon. “However, established banks have an advantage over these tech giants as they are already widely trusted and sustainable, something most digital challengers still need to prove to investors, customers, and regulators. Many traditional banks} APPLE’S DECISION TO ENTER THE BANKING SECTOR COMES AS NO SURPRISE TO FINTECH EXPERTS BREXIT DATE DELAYED After some gruelling weeks leading up to the UK’s intend- ed departure from the EU on 29th March, Prime Minister Theresa May was granted two extra weeks to formulate a solution, pushing the exit date back to 12th April. “The UK government will still have a choice between a deal, no deal, a long extension or revoking Article 50,” said European Council President Donald Tusk. “The 12th April is a key date in terms of the UK deciding whether to hold Euro- pean Parliament elections. If it has not decided to do so by then, the option of long exten- sion will automatically become impossible.” Amidst an online petition to re- voke Article 50 that has so far been signed by nearly 6 mil- lion UK citizens and an anti- Brexit march in central London that attracted over a million people, the Prime Minister, whose deal proposal has now been rejected by the House of Commons twice, is planning to hold a third vote on her with- drawal deal this week. “The actual process of leav- ing the EU itself is now in- creasingly irrelevant”, says Nigel Green, the Founder and CEO of deVere Group. “In- deed, even if the UK didn’t leave, unprecedented damage to the UK’s financial services industry has already been done. “Following years of uncertainty and a lack of firm leadership from all parties, firms across the sector have had to take precautionary action to safe- guard their interests. Typically, have been listening to cus- tomers and their evolving needs more closely, and prioritising technology and innovation in recent years, to ensure they aren’t caught out by these tech giants. The goal now is to ensure that they continue to innovate and provide all the features and services that customers have come to expect from a modern bank account.”