a16z Podcast

16 Minutes on the News #7: Apple Card, BEC Scams Federal Indictment

Aug 25, 2019
Joined by Anish Acharya, a General Partner for FinTech at Andreessen Horowitz and former VP of Product at Credit Karma, the discussion dives into Apple's groundbreaking credit card and its potential reshaping of consumer finance. Anish highlights the implications for credit transparency and burgeoning competition in the financial sector. They also tackle the alarming rise of Business Email Compromise scams, shedding light on a significant federal indictment while stressing the necessity of user education in safeguarding against such cyber threats.
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INSIGHT

Apple Disrupts Credit Cards

  • Apple's entry into financial services is significant, not just as a new credit card.
  • It represents a potential disruption of existing credit card practices and consumer credit.
ANECDOTE

Innovator's Dilemma

  • Credit card companies face an innovator's dilemma, clinging to profitable but outdated fee structures.
  • They risk being disrupted by Apple's transparency, similar to how carriers missed the messaging trend.
INSIGHT

Unbundling the Credit Card

  • Apple is unbundling the credit card by separating customer relationships, payment processing, and debt provision.
  • This gives Apple leverage over partners like Goldman Sachs and MasterCard.
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