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It’s ‘Silicon Valley vs the banks’: Apple’s big threat in finance

Updated: Sep 28, 2021

September 4, 2021

Australian businesses don’t come much bigger than the Commonwealth Bank, a $180 billion giant that sits behind BHP as the second-largest listed company in the country.

But in recent weeks, CBA’s chief executive Matt Comyn has attempted to paint the bank as the little guy. That may sound like a stretch, but he has done so by picking a fight with a company almost twenty times CBA’s size, which most people would never associate with banking: Apple.

The rise of digital wallets such as Apple Pay has been turbo-charged by the pandemic.

Portfolio manager at Insync Funds Management John Lobb says

Apple Pay allows the company to turn the phones into secure substitutes for an old-fashioned wallet, but he doesn’t think a major expansion in finance would make sense for the tech giant.

“I just don’t think the finance side of things is ever really going to shoot the lights out [for Apple],” says Lobb, who holds Apple shares in the funds he manages.

Equity Trustees Limited (“EQT”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Insync Global Quality Fund and the Insync Global Capital Aware Fund. EQT is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This information has been prepared by Insync Funds Management Pty Ltd (ABN 29 125 092 677, AFSL 322891) (“Insync”), to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Insync, EQT nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.
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