Customers of Apple’s banking service receive an annual percentage yield (APY) of 4.15%, which is higher than the 0.06% average interest rate provided by most conventional banks.

This move by Apple has the potential to upend the banking sector and challenge the dominance of Wall Street banks, and it is already taking place. Within the past day, depositors from other banks withdrew almost $60 billion from three US banks, and it is unknown how much more will be withdrawn from these other conventional banks. Apple basically started a bank run overnight, but disruption is something that is allowed in America.

Apple’s foray into the banking sector is not unexpected given the company’s enormous cash reserves, which are estimated to be over $195 billion and were generating interest in how they’d spend or use the money. Due to its strong financial position, Apple will be able to fund its banking activities and provide clients with rates that are affordable.

Additionally, with more than 1 billion users worldwide, Apple has a sizable client base that might translate into a sizable customer base for its banking business and perhaps disrupt other Fintechs as well if/when they enter other fintech verticals.

Many industry analysts believe that Apple’s banking service would upend the established banking paradigm, which has caused a stir in the banking sector since its inception. Wall Street banks, who have long dominated the banking business, will be the ones to be most affected by Apple’s foray into the sector.

Apple, which has a strong brand reputation and a sizable client base, may suddenly present these banks with fierce competition.

It is important to keep in mind that there are hazards associated with Apple’s banking service. The banking sector is heavily regulated, and Apple is subject to a number of rules and specifications. To protect the security of its customers’ money, the corporation will also need to make significant infrastructure and security investments.

Apple’s foray into the banking sector has the potential to upend the sector and challenge Wall Street banks’ hegemony. Apple’s banking service might generate a lot of interest from clients looking for higher interest rates given its enormous financial resources and consumer base.

We may anticipate strong rivalry in the banking sector in the years to come since established banks will not willingly cede their market position. Customers would ultimately gain the most from this competition since they will have more selections and better prices to choose from.

Back in June, Trump signed into law a series of new restrictions on visas that prevents foreign workers from coming into the United States, saying the high unemployment caused by the Coronavirus pandemic was an opportunity for Americans to get back to work.

The visa categories that were affected include L-1 visas for intracompany transfers, H-1Bs for workers in speciality occupations as well as the H-4 visa for spouses, H-2Bs for temporary non-agricultural workers and most J-1 visas for exchange visitors.

Many top companies in the US depend on these visas to bring in foreign workers. The visa restrictions are in place till 2020.

However, in a court filing made available today August 12, 52 major US companies have voiced their disapproval of the visa ban, saying it limits their ability to get the best talents from the world to work for them.

According to the companies, Trump’s visa restrictions “fundamentally disserves the interests of the United States by stifling the ability of U.S. businesses to attract the world’s best talent, drive innovation, and further American economic prosperity.”

The group said in its friend-of-the-court filing “The president’s suspension of nonimmigrant visa programs, supposedly to ‘protect’ American workers, actually harms those workers, their employers, and the economy,” Rather than shielding domestic workers from the threat of foreign competition, the proclamation all but ensures that firms will need to hire abroad to fill highly-skilled positions, for which the domestic demand far exceeds the available supply of workers.”