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Afterpay (APT) $106.62

UPDATED 20/07/2021 17:22

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APT +1.64%: Showed it’s hand today by announcing that it will launch a new banking app for its 3 million-plus Australian users in October. They’ll be able to distribute deposit products and debit cards and provide general financial product advice and are being backed by Westpac (WBC) to do it. Having savings / spending accounts on the APT platform will drive more BNPL adoption (they expect) and is an indication of where the sector will head i.e. digital wallets allowing millennials to do everything from buying stuff, saving money, to investing and superannuation. We’ve talked about this in terms of Zip Co before however in MM’s view the move makes sense for both APT & Westpac and highlights the approach banks are now favouring which is to use their core strengths in terms of balance sheet and core banking expertise to provide the engine for others products / services.