Apple (NASDAQ:AAPL) is just about ready to launch its savings feature for users of its digital wallet – effectively becoming a neobank. While digital banks are chartered entities that provide banking services, neobanks provide bank-like features in partnership with a chartered bank – in this case, Goldman Sachs (NYSE:GS).
Apple Savings was revealed last year, but in true Apple form, the tech firm has taken its time to release it live and in the wild. In fact, according to the Twittersphere, Apple Savings may go live as soon as next week, on April 17th.
After re-examining the backend code, it seems like Apple Card Savings Accounts may go live on April 17
Additionally, it seems like the customized Chinese Apple Pay transit cards may go live on April 18 https://t.co/ljJxjqaIFy
— Aaron (@aaronp613) April 13, 2023
The feature is expected to offer a high-interest-rate digital account for cash parked with Apple. Today, Apple Cash is a way to pay or transfer funds digitally without any savings benefits. This is expected to change and should drive more consumer business to Apple.
Apple is already entrenched in the Fintech sector providing the Apple Card (both digital and physical), a digital wallet, and more recently, a Buy Now Pay Later (BNPL) service, or Apple Pay Later, with expectations for a longer-term credit product at some point in the future. Apple Savings will be the first feature that generates a return, and no one would be very surprised if, at some point, Apple offers other investment products. Do I hear Apple Securities? Makes a lot of sense as consumers want a single location to manage all of their financial existence.
Apple has an established user base that is over a billion devices. According to Warren Buffet, you can’t pay people to give up their iPhones as it is an exceptionally sticky product. By adding financial services, Apple’s products become even stickier – something Apple management is keenly aware of, so expect more Fintech going forward.