Banking with technology companies
The Apple Card is due to launch soon with the help of Mastercard and Goldman Sachs. But why has Apple ventured into the financial sphere? Companies like Apple and Facebook have advantages over traditional banks due to the multiple touch points they have with their clients.
However, this raises ethical and security concerns. Research has found that more than 60% of US and Chinese customers stress the importance of ethical behaviour when choosing a financial institution.
In Henley Business School's leading Insight, Dr Andrew Urquhart discusses whether banking with technology companies could become the future.
Read the full article here.
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A Free Lunch?
Fidelity, the asset manager with $2.4 trillion assets under management, recently announced the launch of two index mutual funds with a 0% fee! This announcement is interesting for several reasons. First, the asset management industry has been involved in an intense price war and this new fee level of 0% represents a very tough benchmark for the competition to beat. Not surprisingly, the share price of rival asset managers fell by a few percentage points shortly after the announcement. Second, the new fee level is unusual as it indicates that, for the first time, investors could get exposure to both US and international equities without incurring any fee. This is a curious business decision. How will Fidelity manage to pay for all its expenses? Will this product be a loss-making venture? Is there more to it than meets the eyes?