Why Big Tech Is Getting Into Finance | WSJ


(upbeat music) – [Narrator] Big Tech has
its eyes set on your wallet. Apple has a credit card. Facebook is trying to
introduce its own currency. And Google has plans to
offer checking accounts to users of its digital wallet in 2020. You can do a lot with
a wallet in your phone, like boarding a train or. (electronic ding) So tech firms are offering services that are usually associated with banks, but they’re doing it differently. – It’s really about data. When a company like Apple or Google processes a payment for you, they find out a lot about you. They know what you bought,
where you bought it, what time of the day or
what day of the month you’re likely to spend money, and that’s really valuable
information for advertisers. – [Narrator] Also, banking is another way for tech firms to draw customers further into their universes. – So Facebook started out as a way to talk to your friends,
and then became a place you shared baby photos
with your grandparents. And now you can shop
on Facebook properties, you can message, Instagram, WhatsApp. Amazon is the same way. It started out as a big store, and now they make home speakers, they make original movies
and television shows. So these companies all
started off with one thing and they’re adding more things around it and finance is kind of the last frontier. – [Narrator] As more people
change their banking habits, tech companies say they can
bring something to the table. Google says it will build helpful tools while relying on partnerships to navigate the financial world. For its part, Apple
promises to eliminate fees for its credit card, and
give you cashback instantly. And the Apple Pay app will have charts that help users track their buying habits. Meanwhile, the Facebook-backed
Libra Association says that using a blockchain
to process transactions could make cross-border
payments cheaper and faster. The company says its planned
cryptocurrency, Libra, could provide banking services
for billions of people. That plan has faced headwinds. Several early partners
dropped from the project and US Fed chairman Jerome
Powell raised concerns with the plan, saying that Facebook’s size could make Libra immediately,
systemically important. That size is on display
in the other services too. According to projects
from Juniper Research, Google Pay is on track
to have 100 million users worldwide in 2020. By that time, Apple Pay
could have 227 million users. Both would be huge increases from 2018. – These tech companies
are already really big and some regulators think too big. Several US regulatory bodies already have antitrust
investigations into Google, Apple, Facebook and other big companies. – [Narrator] Their push into banking could sharpen those concerns. And public trust is an issue too. A poll from McKinsey and Company suggests that a slight majority of respondents would trust Google and Apple
to handle their finances, but Facebook fared less well. – Some people are already wary of giving tech companies
access to their location and their photos. Financial data is just way more personal. – [Narrator] More concerns
over privacy and power will be on display as tech
firms get into finance. The data are valuable, and increasingly they’re in the hands of
a few tech companies. (upbeat music)

90 thoughts on “Why Big Tech Is Getting Into Finance | WSJ

  1. Because they want to control us more and more by creeping into our lives from different directions using various "harmless seeming" aspects of everyday life.

  2. Apple Does NOT do “”””ADVERTISERS””” AND “””COLLECTING PURCHASE DATA””” stop spreading fake news

  3. Apple specifically does not work that way. Apple Card is the only card that I know of that does not track your purchases.

  4. You should fact check your claims about Apple collecting data on what you purchase. According to Apple's written privacy policy:

    "What you buy, where you bought it, and how much you paid is sensitive information. Apple doesn’t store, sell, or use that information.

    "Apple doesn’t store your credit or debit card numbers or share them with merchants. 

    "Instead, a unique Device Account Number is created every time you add a card to Apple Pay. And with Apple Card, your spending history is generated right on your iPhone, so only the bank has that history."

  5. "Help tools"

    Also.. libra claim blockchain system ?

    Haa haa nice try… you dint even know what blockchain is facebook 🤣

  6. no, your data is trash and useless, what you do on the internet is worth nothing,

    your data is just a burden in their server, wasting their precious hard drive space
    & electricity bill

    they convince you that your data is expensive, so you can feel better about yourself

  7. The Chinese have already done it with the Alipay & wechat apps. If google, apple and the rest don’t catch up. Soon it’ll only be the 2 big Chinese firms world wide. Think about it…

  8. Consumers finance trust for Facebook is low. That’s the big reason why it is trying to takeover the majority with their Libra. Btw, I am not fan of Libra because, it is far away from Digital Crypto world.

  9. This video was a disappointment. I was expecting some insightful answer to why tech firms are getting into finance. The closest this video came to addressing that was saying that a record of your financial transactions is useful to advertisers. While this may be true for Google (as its primary business is advertising), Facebook simply does not have a US competitor to Apple Pay or Google wallet, and Apple preaches privacy like its bottom line depended on it. This video brings me no closer to understanding the rise of FinTech.

    A word of constructive advice, take a look at CNBC’s videos on the same topic. None of them are shorter than 10 minutes and all provide in-depth explanations

  10. Data will be the next biggest bubble in history of humanity which is now highly manipulated by tech giants, first they own your privacy now they own your value

  11. reason is to dumb people for big tech until they accept to use microchips in future instead of credit or debit card.

  12. Their should be banks that store data and like banks that provides interest on savings. The customer should get part of the profit created using that data.

  13. if you think about it from different perspective you will learn that governments also have agenda behind it. They have government banks and control the money and if these companies enters the finance they will lose the control. so they are really trying hard to stop them.

  14. Lol late chinese tech companies alibaba(alipay) and tencent(wechat(pay)) have already gone worldwide and accepted w everywhere including the U.S. now their launching a national cryptocurrency processed through their state owned banks and are directionless and almost no fees their so cheap pennies on the dollar litterally

  15. Trust issues lol, I bet the banks has more trust issues than digital wallet. Y cos how can a credit card display all the keys for money transfer on top n back side.. that’s way more untrusted than digital wallet

  16. Because Apple is uniquely positioned to combine hardware and software to create the most secure transactions extant across a variety of its devices.

  17. She must have just read this month's "Kiplinger's Personal Finance." I just read the Kiplinger article and it says the same thing.

  18. This is already happening in China. They have 1 billion users who use Alipay and Wechat pay for all their purchases.

  19. I'm holding Tesla, Alibaba, iQiyi and taking gambles on Change Healthcare and Nio

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    In my opinion, it's too late for Bitcoin, buy Ripple XRP, Litecoin, EOS, OmiseGo(OMG), and Stellar Lumens XLM coins. To invest in the blockhain technology itself, look at $IBM

    When I first started dabbling in Cryptos, I got my feet wet with an app called Coinbase (the most user friendly to use for a beginner). You simply connect your bank account with Coinbase to start buying and selling Bitcoin and other cryptos, which you can send to anyone in the world just like you would an email.

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    But if cryptos aren't your thing, and you'd like to become rich fast you should start a business! If you can't start a business, you should at least be saving money to leave to the next generation.

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  20. Except Apple doesn’t collect user data like that to sell to advertisers. Downvoted and reported for misleading information.

  21. Because gaining control over your finances will allow them to cut you off from the system. So now getting banned from Twitter for offending the Communist Party er Democrat Party will mean thorough destruction of your entire life rather than mere deplatform, doxxing, and cancelculture.

  22. Maybe because buying a new phone now a days (specifically iphones) cost just as much as putting a down payment on a car or house

  23. Those antitrust cases will never materialize. Why would we penalize US firms for helping us compete with Russia and China, even if they do destroy our domestic economy and increase inequality and dependency. The more the government lets this slide, the more they benefit.

  24. They mentioned it will have charts for users to track their buying habits. Sure it is. Their intention is for the big tech companies to track your buying habits so they can bombard them with ads based on their purchases. This is the frontier of absolute control over people and their finances. No thanks, I like the little privacy I have left.

  25. Apple, google, Facebook will gobble up banking. Big banks are being blockbustered away and they don’t even know it. Visa, MasterCard, citi, bank America etc

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