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  • Frank Tian

Apple Breaking Away From Existing Financial System?

Apple has a new venture called “Breakout”

Aiming to launch its own payment processing infrastructure

Other targeted in-house tasks include

Risk assessment, fraud analysis, credit checks, and dispute handling

Meta and Google tried to issue financial products directly

But eventually gave up

Apple has avoided issuing financial products directly

It partners with financial companies to serve its users worldwide

Apple partners with CoreCard and Green Dot for payment processing

The news of the Breakout project sent their shares down 10%

Apple has ample resources to be a fierce financial player

However, it doesn’t make sense for it to become a bank

In 2021, the ROE of US banks is 14%

Apple’s ROE is an eye-popping 147%

Apple wants to be a super-connector between banks and consumers

To maintain the high growth with technology and analytics

Recently it purchased an open banking technology company Credit Kudos

Which also has a credit reference agency license and risk decision engine

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