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Apple nets $1 billion in deposits within a week of savings account launch

The risk to bank deposit bases from the arrival of Big Tech players is being brought into stark relief by reports that Apple's new savings account scopped up $1 billion in consumer cash within four days of launch.

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Apple nets $1 billion in deposits within a week of savings account launch

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The long-trailed Apple Card savings account from Goldman Sachs was launched in Mid-April with a headline-grabbing 4.15% annual percentage yield - more than 10 times the national average, according to FDIC data.

According to internal sources cited by Forbes, the consumer technology giant racked up $990 million in deposits in less than a week. In that time, 240,000 accounts signed up for the service.

For Apple's loyal users, the savings acccount not only represents a market-beating return on their cash, but also a safe haven during rising interest rates and bank crashes.

The arrival of Big Tech giants in financial services has banks and regulators rattled. In Frebruary Augustin Carsens, BIS general manager called for a co-ordinated regulatory response to restrict the incursions of firms like Amazon, Apple and Google into financial services, arguing that the current rules are "not fit for purpose".

He argues that Big Tech mastery of user data coupled with their size and customer reach could trigger rapid change in the financial services industry, leaving established banks at a competitive disadvantage.

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