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The next frontier: Apple and Amazon could be the next to disrupt ETFs

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  • Feb 27th, 2019 1:55 pm
[OP]
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Sep 9, 2006
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The next frontier: Apple and Amazon could be the next to disrupt ETFs

Source: https://www.cnbc.com/2019/02/17/apple-a ... ustry.html

Combined with the news that Apple is launching a new Credit Card soon. Even FB is playing its cards and eyeing purchase of bank to diversify.

https://www.cnn.com/2019/02/21/tech/app ... index.html

Still early days, but excited to see more options than dealing with toxic banks that gouch their customers for every single penny thru service fees.

Personally I concur with the expert opinion "“Everybody hates the financial services industry. We hate insurance companies, credit card companies, banks and brokerage firms,”"

May be time is coming to scale back on Canadian Banks and load up on faang stocks.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
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Apr 13, 2008
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I've got no beef with credit card companies. Better than using cash and saved me a lot of money over the years.
Deal Addict
Nov 9, 2013
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Have you ever thought why the big American banks can't / aren't expanding into Canada, while the Canadian banks are expanding into America?
Keep calm and go long
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May 11, 2018
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treva84 wrote: Have you ever thought why the big American banks can't / aren't expanding into Canada, while the Canadian banks are expanding into America?
Please elaborate on what you are thinking about this! :)
Ju Leon...
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Grego8 wrote: Please elaborate on what you are thinking about this! :)
The Bank Act of Canada limits foreign ownership of financial institutions in Canada. The Canadian banks are essentially a regulated monopoly protected by the Federal Government. This protects them from disruption by American competition. This is also why Canadian banks enjoy higher ROEs than their American counterparts.

No equivalent legislation is in place in the US, so Canadian banks can enter the US market and try and disrupt their American competition.
Keep calm and go long
[OP]
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Sep 9, 2006
217 posts
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treva84 wrote: The Bank Act of Canada limits foreign ownership of financial institutions in Canada. The Canadian banks are essentially a regulated monopoly protected by the Federal Government. This protects them from disruption by American competition. This is also why Canadian banks enjoy higher ROEs than their American counterparts.

No equivalent legislation is in place in the US, so Canadian banks can enter the US market and try and disrupt their American competition.
I absolutely agree with you. Canadian banks are essentially a regulated monopoly and are well protected by the governments, but the concept of monopoly is not unique to FI's. Look at taxi companies, retail stores, media publishers etc, they were all part of monopoly culture only a few years ago. I firmly believe that Canadian telecom and banks are up next for a major disruption within the next 2-3 years.

Think of a scenario where Amazon starts offering a free credit card, chequing account and LoC with prime membership. They already have enough data on you, know your shopping patterns, behaviour and can position themselves for a major purchase (car, home, vacation) in ways that banks can never anticipate.

History has proved that regulation and legislation are typically behind and struggled to keep up with the disruptive forces. Ergo, not too optimistic for future of Canadian Banks and FI stocks.
justDeals is not a member of any public groups and a very unsatisfied Questrade customer.
Deal Addict
Nov 9, 2013
3946 posts
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Edmonton, AB
justDeals wrote: I absolutely agree with you. Canadian banks are essentially a regulated monopoly and are well protected by the governments, but the concept of monopoly is not unique to FI's. Look at taxi companies, retail stores, media publishers etc, they were all part of monopoly culture only a few years ago. I firmly believe that Canadian telecom and banks are up next for a major disruption within the next 2-3 years.

Think of a scenario where Amazon starts offering a free credit card, chequing account and LoC with prime membership. They already have enough data on you, know your shopping patterns, behaviour and can position themselves for a major purchase (car, home, vacation) in ways that banks can never anticipate.

History has proved that regulation and legislation are typically behind and struggled to keep up with the disruptive forces. Ergo, not too optimistic for future of Canadian Banks and FI stocks.
I think if it is indeed going to happen, it will happen in the US years prior to it happening in Canada. Perhaps this will be a thread to bump in a couple of years if this starts to happen.
Keep calm and go long

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