Apple's iPhone and its ecosystem have what it takes to become the ultimate financial management tool, said German, a reporter for Bloomberg's Power On Newsletter. (Photo from Reuters)

(We Chinese in America Media Editor Tang Zhao, January 10, 2022) More than 1 billion people currently use iPhones to track their health information and home devices, including starting their BMWs. But in terms of financial management, although Apple Pay has become the most frequently used mobile payment in the United States, Apple Card has not caused a big stir.

According to Mark Gurman, a reporter who wrote the "Power On" Newsletter for Bloomberg, with its relationships with banks, consumers' credit card and bank account data, an image of trustworthiness and privacy, and the ability to simplify complex tasks, and with its history, Apple has the cornerstone to turn the iPhone and its ecosystem into the ultimate financial management tool.

First, Apple has to launch its credit card outside the US. The Apple Card, which launched in 2019, is three years old, and Apple has surprisingly yet to expand on this key product.

Secondly, the main function of Apple Card is to provide installment options for purchasing Apple products. Gurman suggested to upgrade and launch Apple Card+ with better rewards, to challenge American Express debit card American Express Platinum and JPMorgan Chase bank credit card Chase Sapphire Reserve. Apple can work with its partner Goldman Sachs Group to ensure that consumers get the right line of credit and will not be arbitrarily rejected; at the same time, for more valuable consumption, provide 1%, 2%, or 3% cash back.

Third, Apple could follow PayPal and transform its wallet app Wallet into an all-encompassing financial experience, including managing and paying bills, sending and receiving funds, processing buy now pay later transactions, and storing offers for brick-and-mortar and online retailer's coupons or discounts.

Fourth, Apple could also turn the (US-only) cash card into a true debit card, allowing uses other than Apple Pay.

With the debit card, Apple could next introduce digital-first checking and savings accounts. Goldman Sachs, American Express and others have tried it, but are far from revolutionizing banking. Gurman believes that Apple is good at user interface design and has the ability to deeply integrate financial products, so it can truly achieve one-stop fund management.

German also said that if Apple can safely store money digitally for users, it should also assist with the investment. Apple already has a great built-in app for tracking individual stocks, and should partner with a well-known stock exchange company, such as E*Trade or Fidelity, to allow the user to manage and track his investments within the app. Even like health tips in a health app, articles help users understand investments.

Another idea: Automatically invest Apple Card cash back and introduce a change investment feature to challenge Acorns’ and Robinhood's future plans.

Apple is about to report on January 27 how much it made in the first quarter of the year, the 2021 holiday season. The company is expected to report making more money than ever before, surpassing the $111.4 billion it made a year ago.

(Source: World Journal)