LESSONS FOR IFAS AND MORTGAGE BROKERS
Apple recently ventured into the Buy Now Pay Later (BNPL) space, aiming to develop its own application. Partnering with Goldman Sachs for financial expertise, they set out to build this solution. However, fast forward a few years, and Apple has scrapped its original plans, opting instead to collaborate with Citibank, a firm that already possesses the distribution network and expertise necessary for success.
This pivot underscores the importance of managing reputational risk, particularly concerning regulatory scrutiny from entities like the FCA. Just this year, we witnessed global player FNZ face a Section 166 skilled persons report from the FCA, highlighting the challenges that even established companies encounter in navigating compliance. The reality is that even giants like Apple are reluctant to pursue a UK license for credit terms under FCA regulations.
In the end, Apple not only incurred losses while developing its BNPL solution but also faced further financial setbacks as they pivoted away from it. Their new strategy relies on partnerships to move forward—a clear indication that collaboration is key.
While it’s in BAT’s interest to promote our system as a solution for hire, there’s a fundamental truth to acknowledge: humans learn by imitating one another. Across Europe, countries often credit their own innovators—be it in electricity, telegraphy, telecommunications, or automotive engineering—while recognizing the collective contributions of those who came before. The fact remains that even a powerhouse like Apple must understand the intricacies of the business landscape from the ground up, and that often involves borrowing knowledge and expertise from others.
As IFAs and mortgage brokers navigate this evolving landscape, the lessons from Apple’s journey serve as a reminder of the importance of strategic partnerships and collaborative growth.