2019-03-03 10:39:00 Sun ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
Tech companies seek to serve as quasi-financial intermediaries. Retail traders can list items for sale on eBay and then acquire these items economically on Amazon for direct shipments when busy buyers place orders on eBay. These retail traders serve as information arbitrageurs and so clip spreads between the divergent prices on Amazon and eBay. This online information arbitrage occurs often enough to be a viable business. From a practical perspective, this information arbitrage proves to be a valuable service at a market price.
Time is finite and human attention is precious so that the intermediary service often turns out to be worthwhile for better immediacy and convenience. In a similar vein, the online search website for real estate, Zillow Group, now attempts to serve as a quasi-financial intermediary for both home purchases and mortgage loans. Zillow brings back its co-founder and former CEO Richard Barton to lead this ambitious transformation. Zillow now transforms how Americans buy and sell their real estate properties as the tech platform uses both big data analysis and artificial intelligence to change how these residential owners and investors shop for homes with mouse clicks and satellite maps. Busy buyers pay for immediacy and convenience when they shop for homes on Zillow.
In addition to Amazon-eBay information arbitrage and Zillow real estate, Apple and Goldman Sachs enter into a strategic alliance to expand the credit card business. Apple pairs the new credit card with key iPhone features such as Face ID to better serve its active users. This credit card piggybacks on the Mastercard network and offers 2% cash rewards for most online purchases. Beyond cash bonuses, Apple and Goldman Sachs hope to leverage the Wallet app for tracking account balances and rewards for better personal finance management.
Like Goldman Sachs, big banks shift operational focus from their prior reliance on capital-intensive risk businesses to tech platforms for their tech-savvy clients. In light of financial distress and post-crisis regulation, big banks prefer to build online platforms for their key institutional clients to trade bonds, funds, and other complex securities. The banks accumulate fees and commissions when these transactions happen for the mutual benefits of both banks and institutional investors themselves. This fresh logic explains why Apple and Goldman Sachs can now work together to strengthen their credit card business. Nowadays Amazon-eBay arbitrageurs and tech titans such as Apple and Zillow seek to serve as quasi-financial intermediaries.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-03-11 08:27:00 Sunday ET

At 89 years old, Hong Kong billionaire Li Ka-Shing announces his retirement in March 2018. With a personal net worth of $35 billion, Li has an incredible ra
2023-11-30 08:29:00 Thursday ET

In addition to the OECD bank-credit-card model and Chinese online payment platforms, the open-payments gateways of UPI in India and Pix in Brazil have adapt
2017-12-09 08:37:00 Saturday ET

Michael Bloomberg, former NYC mayor and media entrepreneur, criticizes that the Trump administration's tax reform is a trillion dollar blunder because i
2018-12-23 13:39:00 Sunday ET

The House of Representatives considers a government expenditure bill with border wall finance and therefore sets up a shutdown stalemate with Senate. As fre
2019-01-06 08:39:00 Sunday ET

President Trump signs an executive order to freeze federal employee pay in early-2019. Federal employees face furlough or work without pay due to the govern
2023-05-27 11:30:00 Saturday ET

Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank. What are the main root cau