The largest money market fund of the world is Alibaba’s Ant Financial Group. Dave Nadig from ETF.com claims it is not such a far-reached idea. As funding becomes more automated, the tech companies such as Apple, Amazon, Alphabet could bring their expertise to an industry impeded by distribution challenges, he recommended at the Inside conference in Hollywood, Florida, earlier in this month.
The founder of Edelman Financial Engines, Ric Edelman claims that it is “inevitable” that one of these big companies will capture the market in the next five years. Edelman told, “ There’s too much money there”. He added, “ And as soon as one of them does, they all do”.
The editor-in-chief of ETF Trends, Tom Lydon agrees on the likelihood that tech companies will make the entry in the financial services industry in the next coming years.
The editor-in-chief of ETF Trends, Tom Lydon told, “ It will probably be in the form of an acquisition”. He added, “I look at Softbank. Softbank has got all the data in the world. They know if I go to the gym, they know my prescriptions, they know I like red wine, they know I like 80s music because they are aggregating all the data there. They’ve got a $100 billion venture fund. I’d bet on a company like that. ”
Tech companies also can take help for brand and reputation to convince the consumers to trust them with financial products. He explained, “ Everybody hates the financial services industry. We hate insurance companies, credit card companies, banks and brokerage firms”.
He also added, “ We’re increasingly hating Facebook so I think there might be a reputational challenge there if [CEO Mark] Zuckerberg decided to buy a bank, but I don’t know that Google would have that challenge and so I think there is a huge opportunity, especially with the younger generation. I wouldn’t at all be surprised to see them one day enter the space.”