Apple Expands Financial Markets Operations Through Fintech Acquisition

Apple Acquisition

Many of you are probably familiar with Apple (AAPL) as a manufacturer of computers and cell phones. But the corporation with the nibbled apple logo has also been active in many other areas for several years.

For example, the film Coda, produced by the Apple streaming service, won three Oscars last Sunday. But Apple is also active as a financial services provider. As early as the end of 2014, the Californians established their own payment system with Apple Pay. The Silicon Valley company has even launched its own credit card, the Apple Card. 

Last week it became known that another Apple acquisition is in the works, as they further expand activities in the financial sector. On March 23, 2022, the news service The Block, which specializes in cryptocurrencies, reported that it had learned from a reliable source of an Apple acquisition. They had obtained the London-based financial startup Credit Kudos.

An Unusually Large Deal For Apple

According to insiders, this Apple acquisition has left about $150 million on the table for the startup. This startup specializes in accounts payable information and open banking. Credit Kudos also had this value at this sum in a 2020 financing round.

This would make this acquisition one of the Apple Group’s larger deals. Apple is known for the fact that the megacorporation mainly buys up small startups or teams and integrates them into the group. As a rule, Apple does not make a big fuss about its acquisitions and rarely publicizes them.

This Is Why Credit Kudos Is So Interesting For Apple

If you are now wondering what Apple wants to do with a fintech like Credit Kudos, a closer look at the British startup will help. Credit Kudos specializes in checking credit collateral, much like the German credit agency Schufa.

But there is a serious difference between the two companies. Schufa examines a customer’s creditworthiness in traditional ways, such as by analyzing account information and utility bills. Credit Kudos works with intelligent systems and real-time data to check a customer’s creditworthiness.

Credit Kudos is also active in the promising field of open banking. The British startup makes data from private individuals available to its customers in the financial sector via interfaces. This data is used, for example, for financial viability and risk assessments.

Investors Welcome Apple Acquisition Deal

The acquisition of Credit Kudos also had a positive impact on Apple’s share price on the stock market. The latter jumped a good 1.8% to $174.07 on the NASDAQ on March 24, 2022. That’s the day after The Block press report was released. Investors are obviously in favor of Apple’s purchase of the innovative fintech.

Open Banking Is A Growth Market

There have been some spectacular acquisitions in the open banking market in recent years. For example, credit card company Visa attempted to acquire California-based fintech Plaid in early 2021. However, the effort failed. In June 2021, however, Visa was successful: it acquired the British open banking platform Tink for 1.8 billion euros.

Mastercard, another U.S.-based credit card company, announced the acquisition of Danish open banking startup Aiia in September 2021. However, a purchase price was not specified.

Many folks want to participate in the strongly rotating takeover carousel on the open banking market. If you do too, keep an eye out for potential takeover candidates from this sector.

After this Apple Acquisition, What’s Next

According to the news service Heise, Apple is very active on the takeover market. Even if the company from Silicon Valley does not make a big fuss about it. In the last 6 years alone, Apple acquired more than 100 companies. However, these are usually “small innovative companies,” as Apple CEO Tim Cook announced at a shareholders’ meeting.

What exactly Apple plans to do with Credit Kudos was not disclosed. However, the open-banking as well as smart credit scores certainly integrate well with Apple’s existing financial services.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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