Description: In last week’s Wiley Accounting Weekly Updates you would have seen a story on the new Apple credit card. This week it’s Google hitting the news, with its announcement that it will be moving into chequing accounts. Google is adopting a strategy of putting its banking partners up front in this venture, differentiating it from Apple with its ads that the Apple credit card was “designed by Apple, not a bank.” Apple’s approach was not well received by its banking partner Goldman Sachs.
Date: November 13, 2019
Source: thestar.com; wsj.com
1) Why do you think the big tech companies are so interested to move into financial services?
2) If you were an accounting executive at a financial institution, what strategies might you recommend to deal with the threat posed by the tech companies entering their world?
3) P13-8B on page 755 of Wiley’s Financial Accounting: Tools for Business Decision-Making asks the question “Why do you think Microsoft has paid out dividends while Google has not”? What do you think?