Apple’s Next Big Move Should Include Fintech—Not Just AI
Whether transforming the way we purchase and listen to music with Apple Music and the iPod, reshaping global communication with the iPhone, or redefining wearables with the Apple Watch, Apple Inc. has long been at the forefront of major tech trends. But with Microsoft, Alphabet, and Meta all sprinting ahead with the development of advanced large language models capable of handling complex reasoning, the spotlight is on artificial intelligence (AI) and Apple’s absence from the leaderboard.
Yet by focusing solely on AI, Apple risks overlooking a far more immediate and strategic opportunity in financial technology. Unlike its rivals, Apple already commands an extraordinary level of consumer trust, a fiercely loyal user base, and a well-established fintech infrastructure—making it uniquely positioned to expand deeper into financial services.
To subscribe to the MalcolmOnMoney newsletter and receive more content like this, click here.
In 2024, Apple brought in nearly $400 billion in total revenue, with roughly half of that—about $200 billion—coming from iPhone sales alone. However, sales of its flagship product have been steadily declining. For instance, in the first quarter of 2025, iPhone sales dropped to $47 billion, representing a 32% decrease from both the previous quarter and the entire year prior. This is why doubling down on fintech wouldn’t just help diversify the company’s revenue mix; it would also provide a faster, more tangible path to growth and help reshape the narrative around Apple’s future beyond hardware.
The Trust Factor: Apple’s Strongest Competitive Advantage
In a digital world where data breaches and online scams are increasingly common, Apple’s strong reputation for privacy and security has become its most valuable asset. Time and time again, surveys rank Apple among the world’s most trusted brands, and when sensitive financial information is at stake, that trust becomes a form of currency in its own right.
Ask most consumers whether they’d rather hand over their banking data to Apple, Meta, Alphabet, or a new crypto startup, and Apple is sure to come out on top. That trust gap is precisely what gives Apple an edge in fintech amongst its peers. Consumers are far more likely to link their checking accounts, authorize payments, or store digital assets with a brand they already trust to safeguard their most personal data.
This is especially true when considering the ways in which the rapid advancement of AI tools have made fraudsters more convincing and harder to detect. Deepfakes, voice cloning, and highly-targeted phishing attacks have become alarmingly effective at breaching traditional security systems. According to the Federal Trade Commission, consumers lost more than $12.5 billion to fraud in 2024 alone, with a considerable portion tied to impersonation and investment scams.
In response, major banks are now spending billions annually on cybersecurity and fraud prevention—costs that are quickly becoming table stakes for anyone operating substantially in financial services. JPMorgan Chase’s CEO once publicly disclosed spending more than $600 million per year on technology to secure customer accounts.
By contrast, most fintech firms and neo-banks operate on thinner margins and simply cannot afford the same level of investment in security. But Apple can. Not only does it already significantly operate secure hardware and software ecosystems, it has a decades-long track record of proactively building in protections that put user privacy first. In an environment where trust is scarce and cyber threats are escalating, Apple’s willingness and ability to spend heavily on user data protection and security could become its most formidable edge in fintech.
Proof of Market Demand: Apple’s Early Wins in Fintech
Apple has already successfully dipped its toes into fintech. On its own, the expansion of Apple Pay has been a quiet revolution, driving global adoption of contactless and mobile payments at scale. The Apple Card, launched in partnership with Goldman Sachs, saw an immediate surge in adoption among its massive iPhone user base. And more recently, Apple rolled out a high-yield savings account for Apple Card users—offering rates that were above average—that raked in billions of dollars in deposits within weeks of its debut.
The launch of Apple Pay Later in 2023 marked a pivotal moment in this trajectory. For the first time, Apple wasn’t merely acting as a more refined software layer or distribution partner—it created a wholly-owned subsidiary, Apple Financing LLC, and acquired the necessary licenses to originate and manage short-term installment loans directly. That move made it clear that Apple no longer intends to simply dabble with fintech.
Until this point, the company has managed to reap the benefits of financial services with minimal regulatory risk. But as it edges further into this territory, the case for an acquisition becomes more compelling.
Historically, Apple has preferred to build products in-house or acquire smaller companies that fit seamlessly into its tightly controlled ecosystem. Its largest acquisition to date was the headphone company Beats by Dre for $3 billion in 2014, but the current climate calls for something different.
Of the online banking and fintech platforms in the market, one name stands out: SoFi. The digital-first fintech platform brings a millennial and Gen Z customer base that mirrors Apple’s most coveted demographics: high-earning, tech-savvy, and loyal. Not to mention SoFi has already secured a national bank charter, which would allow Apple to bypass the slow and complex process of building a licensed financial institution from the ground up.
Apple currently lacks the licensing and infrastructure needed to expand into banking services such as home mortgages, student loan refinancing, and personal loans—all which SoFi can deliver. In addition to those, SoFi also offers investment services and recently announced plans to bring back trading in cryptocurrency, stablecoins, and other digital assets later this year.
Whether by SoFi or another similarly situated fintech company, an acquisition by Apple would be a reinvention of what modern banking looks like, offering a one-stop financial experience that spans payments, banking, and investing. And if Apple’s existing users are already showing there is demand by using Apple Pay, applying for an Apple Card, and moving deposits into Apple Savings accounts, what might they do with a fully integrated fintech ecosystem?
A New Growth Engine: Expanding Services Revenue
Apple’s services segment has been the bright spot in its quarterly financial results, consistently outpacing hardware in revenue growth and margin expansion. But even that highlight is now at risk. Apple currently relies on a payment of $20 billion annually from Google as part of the companies’ search default arrangement. However, with that arrangement now under scrutiny in federal antitrust investigations, Apple faces pressure to bridge the gap.
Fintech could be the solution. Interest income from deposit products, interchange fees from cards, and commissions from financial services could funnel directly into the “Services” category. For example, if Apple’s 12 million-plus cardholders generate just $500 per year in fees and interest, that would amount to more than $6 billion in annually recurring revenues.
Expanding into loan origination—particularly in categories like home mortgages and personal or student loans—could further increase that opportunity. Namely, SoFi got its start by refinancing student debt and originating mortgages for high-earning, creditworthy borrowers. In 2024 alone, SoFi originated more than $23 billion in loans across those three categories. If Apple were to scale similar offerings to even a fraction of its existing install base, the revenue potential would be significant.
But beyond traditional banking, fintech now opens the doors to crypto, remittances, and stablecoins. Consider the global payments market where the average transaction fee is more than 6%, and transaction fees alone represent a multibillion-dollar opportunity. In a world where borderless payments and digital assets are gaining regulatory approval almost daily, Apple’s global presence and marketing prowess can help drive adoption of these services overnight.
Putting it All Together
Almost five decades ago, Apple set out to “put a dent in the universe”—first with PCs, then with music, phones, and the app store. Fintech could very well be the next frontier. And compared to the multi-billion dollar infrastructure investment required to compete in AI, a pivot toward fintech feels more immediate and more aligned with Apple shareholders’ desire for the next big thing.
At a time when Apple’s hardware-driven story is beginning to show signs of old age, investors have become increasingly vocal about their desire to see the company find a new catalyst for solid revenue growth and margin expansion going forward. With iPhone sales softening and service revenue increasingly under regulatory threat, Apple needs a new narrative to reassure Wall Street and help defend its above-average valuation multiple.
With a full-service digital bank in its orbit, Apple could instantly drive billions of dollars in new services income, fill gaps if regulatory pressures shrink search payouts, and capture a leading position in payments, crypto, and global remittances. Fintech isn’t just an extension of Apple’s existing strategy—it could be the next chapter in its story.
****************************************
Malcolm Ethridge is the Managing Partner at Capital Area Planning Group, based in Washington, D.C. His areas of expertise include retirement planning, investment portfolio development, tax planning, insurance, equity compensation and other executive benefits.
To subscribe to the MalcolmOnMoney newsletter and receive more content like this, click here.
Disclosures:
The information provided is for educational and informational purposes only, does not constitute investment advice, and should not be relied upon as such. Be sure to consult with your legal advisors before taking any action that could have tax and legal consequences.
Investments in securities and insurance products are:
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE