Technology

Visualizing the Importance of Trust to the Banking Industry

Published

3 years ago

June 6, 2019

Jeff Desjardins

Visualizing the Importance of Trust to the Banking Industry

In the digital age, money is becoming less tangible.

Not only is carrying physical cash more of a rarity, but we are now able to even make contactless payments for many of the products and services we use on the fly.

Our financial transactions are starting to be analyzed and optimized by artificial intelligence. Meanwhile, investments and bills are paid online, and even checks can now be deposited through our phones. Who has the time to visit a physical bank these days, anyways?

Trust in the Digital Age

The migration of financial services to the cloud is increasing access to banking solutions, while breaking down barriers of entry to the industry. It’s also creating opportunities for new service offerings that can leverage technology, data, and scale.

However, as today’s infographic from Raconteur shows, this digital migration has a crucial side effect: trust in financial services has emerged as a dominant driver of consumer activity.

This likely boils down to a couple major factors:

Tangibility
Financial services are becoming less grounded in physical experiences (using cash, visiting a branch, personal relationships, etc.)
Personal Data
Consumers are rightfully concerned about how personal data gets treated in the digital age

Further, the above factors are compounded by memories of the 2008 Financial Crisis. These events not only damaged institutional reputations, but they elevated trust to become a key concern and selling point for consumers.

Trust, by the Numbers

In general, trust in banks has been slowly on the rise since hitting a low point in 2011 and 2012.

At the same time, consumers are consistently ranking trust as a more important factor in their decision of where to bank. To the modern consumer, trust even outweighs price.

Top Five Factors for Choosing a Bank:

Ease and convenience of service (47%)
Trust with the brand (45%)
Price/rate (43%)
Service resolution quality and timeliness (43%)
Wide network coverage of ATMs (40%)

It’s important to recognize here that all five of the above factors rank quite closely in percentage terms. That said, while they are all crucial elements to a service offering, trust may be the most abstract one to try and tackle for companies in the space.

With this in mind, how can financial services leverage tech to increase the amount of trust that consumers have in them?

Tech Factors That Would Increase Consumer Trust:

Reliable fraud protection (36%)
Technology solves my problems (13%)
Useful mobile application (9%)

Better fraud protection capability stands out as one major trust-builder, while designing technology that is useful and effective is another key area to consider.

Related Topics:technology banks trust data

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Technology

Apple’s Colossal Market Cap as it Hits $3 Trillion

Apple’s market cap recently hit $3 trillion. To put that scale into context, this visualization compares Apple to European indexes.

Creator Program

Published

7 days ago

January 10, 2022

Nick Routley

Apple’s Colossal Market Cap in Context

In January of 2019, Apple’s market capitalization stood at $700 billion.

While this was perceived as a colossal figure at the time, when we fast forward to today, that valuation seems a lot more modest. Since then, Apple has surged to touch a $3 trillion valuation on January 3rd, 2022.

To gauge just how monstrous of a figure this is, consider that Apple is no longer comparable to just companies, but to countries and even entire stock indexes. This animation from James Eagle ranks the growth in Apple’s market cap alongside top indexes from the UK, France, and Germany.

Let’s take a closer look.

Apple Takes On Europe

The three indexes Apple is compared to are heavyweights in their own right.

The FTSE 100 consists of giants like HSBC and vaccine producer AstraZeneca, while the CAC 40 Index is home to LVMH, which made Bernard Arnault the richest man in the world for a period of time last year.

Nonetheless, Apple’s market cap exceeds that of the 100 companies in the FTSE, as well as the 40 in each of the CAC and DAX indexes.

Stock/Index	Market Cap ($T)	Country of Origin
Apple	$3.00T	🇺🇸
FTSE 100	$2.90T	🇬🇧
CAC 40 Index	$2.76T	🇫🇷
DAX 40 (Dax 30) Index*	$2.50T	🇩🇪

*Germany’s flagship DAX Index expanded from 30 to 40 constituents in September 2021.

It’s important to note, that while Apple’s growth is stellar, European companies have simultaneously seen a decline in their share of the overall global stock market, which helps make these comparisons even more eye-catching.

For example, before 2005, publicly-traded European companies represented almost 30% of global stock market capitalization, but those figures have been cut in half to just 15% today.

Here are some other approaches to measure Apple’s dominance.

Apple’s Revenue Per Minute vs Other Tech Giants

Stepping away from market capitalization, another unique way to measure Apple’s success is in how much sales they generate on a per minute basis. In doing so, we see that they generate a massive $848,090 per minute.

Here’s how Apple revenue per minute compares to other Big Tech giants:

Company	Revenue Per Minute
Amazon	$955,517
Apple	$848,090
Alphabet (Google)	$433,014
Microsoft	$327,823
Facebook	$213,628
Tesla	$81,766
Netflix	$50,566

Furthermore, Apple’s profits aren’t too shabby either: their $20.5 billion in net income last quarter equates to $156,000 in profits per minute.

How Apple Compares To Countries

Lastly, we can compare Apple’s market cap to the GDP of countries.

Country (excluding Apple)	Total Value ($T)
Apple	$3.0T
Italy	$2.0T
Brazil	$1.8T
Canada	$1.7T
Russia	$1.7T
South Korea	$1.6T
Australia	$1.4T
Spain	$1.4T
Mexico	$1.3T
Indonesia	$1.1T

What might be most impressive here is that Apple’s market cap eclipses the GDP of major developed economies, such as Canada and Australia. That means the company is more valuable than the entire economic production of these countries in a calendar year.

That’s some serious scale.

Technology

Companies Gone Public in 2021: Visualizing IPO Valuations

Tracking the companies that have gone public in 2021, their valuation, and how they did it.

Published

1 week ago

January 7, 2022

Omri Wallach

Companies Gone Public in 2021: Visualizing Valuations

Despite its many tumultuous turns, last year was a productive year for global markets, and companies going public in 2021 benefited.

From much-hyped tech initial public offerings (IPOs) to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market.

This graphic measures 68 companies that have gone public in 2021 — including IPOs, SPACs, and Direct Listings—as well as their subsequent valuations after listing.

Who’s Gone Public in 2021?

Historically, companies that wanted to go public employed one main method above others: the initial public offering (IPO).

But companies going public today readily choose from one of three different options, depending on market situations, associated costs, and shareholder preference:

Initial Public Offering (IPO): A private company creates new shares which are underwritten by a financial organization and sold to the public.
Special Purpose Acquisition Company (SPAC): A separate company with no operations is created strictly to raise capital to acquire the company going public. SPACs are the fastest method of going public, and have become popular in recent years.
Direct Listing: A private company enters a market with only existing, outstanding shares being traded and no new shares created. The cost is lower than that of an IPO, since no fees need to be paid for underwriting.

The majority of companies going public in 2021 chose the IPO route, but some of the biggest valuations resulted from direct listings.

Listing Date	Company	Valuation ($B)	Listing Type
08-Jan-21	Clover Health	$7.0	SPAC
13-Jan-21	Affirm	$11.9	IPO
13-Jan-21	Billtrust	$1.3	SPAC
14-Jan-21	Poshmark	$3.0	IPO
15-Jan-21	Playtika	$11.0	IPO
21-Jan-21	Hims and Hers Health	$1.6	SPAC
28-Jan-21	Qualtrics	$15.0	IPO
09-Feb-21	Metromile	-	SPAC
11-Feb-21	Bumble	$8.2	IPO
26-Feb-21	ChargePoint Holdings	-	SPAC
03-Mar-21	Oscar Health	$7.9	IPO
10-Mar-21	Roblox	$30.0	Direct Listing
11-Mar-21	Coupang	$60.0	IPO
23-Mar-21	DigitalOcean	$5.0	IPO
25-Mar-21	VIZIO	$3.9	IPO
26-Mar-21	ThredUp	$1.3	IPO
31-Mar-21	Coursera	$4.3	IPO
01-Apr-21	Compass	$8.0	IPO
14-Apr-21	Coinbase	$86.0	Direct Listing
15-Apr-21	AppLovin	$28.6	IPO
21-Apr-21	UiPath	$35.0	IPO
21-Apr-21	DoubleVerify	$4.2	IPO
05-May-21	The Honest Company	$1.4	IPO
07-May-21	Lightning eMotors	$0.82	SPAC
07-May-21	Blade Air Mobility	$0.83	SPAC
19-May-21	Squarespace	$7.4	Direct Listing
19-May-21	Procore	$9.6	IPO
19-May-21	Oatly	$10.0	IPO
26-May-21	ZipRecruiter	$2.4	Direct Listing
26-May-21	FIGS	$4.4	IPO
01-Jun-21	SoFi	$8.7	SPAC
02-Jun-21	BarkBox	$1.6	SPAC
08-Jun-21	Marqueta	$15.0	IPO
10-Jun-21	Monday.com	$7.5	IPO
16-Jun-21	WalkMe	$2.5	IPO
22-Jun-21	Sprinklr	$3.7	IPO
24-Jun-21	Confluent	$9.1	IPO
29-Jun-21	Clear	$4.5	IPO
30-Jun-21	SentinelOne	$10.0	IPO
30-Jun-21	LegalZoom	$7.0	IPO
30-Jun-21	Didi Chuxing	$73.0	IPO
16-Jul-21	Blend	$4	IPO
21-Jul-21	Kaltura	$1.24	IPO
21-Jul-21	DISCO	$2.5	IPO
21-Jul-21	Couchbase	$1.4	IPO
23-Jul-21	Vtex	$3.5	IPO
23-Jul-21	Outbrain	$1.1	IPO
28-Jul-21	Duolingo	$3.7	IPO
28-Jul-21	Riskified	$3.3	IPO
29-Jul-21	Robinhood	$32.0	IPO
22-Sep-21	Toast	$22.0	IPO
22-Sep-21	Freshworks	$10.1	IPO
23-Sep-21	Remitly	$6.9	IPO
28-Sep-21	Amplitude	$6.4	Direct Listing
29-Sep-21	Warby Parker	$6.0	Direct Listing
14-Oct-21	GitLab	$11.0	IPO
27-Oct-21	Rent the Runway	$1.7	IPO
29-Oct-21	Udemy	$4.0	IPO
03-Nov-21	Allbirds	$2.2	IPO
04-Nov-21	NerdWallet	$1.2	IPO
10-Nov-21	Rivian	$66.5	IPO
10-Nov-21	Expensify	$2.2	IPO
11-Nov-21	Winc	-	IPO
11-Nov-21	Weave	-	IPO
17-Nov-21	UserTesting	-	IPO
17-Nov-21	Braze	$6.0	IPO
18-Nov-21	Sweetgreen	$3.0	IPO
09-Dec-21	Nubank	$41.0	IPO

Though there are many well-known names in the list, one of the biggest through lines continues to be the importance of tech.

A majority of 2021’s newly public companies have been in tech, including multiple mobile apps, websites, and online services. The two biggest IPOs so far were South Korea’s Coupang, an online marketplace valued at $60 billion after going public, and China’s ride-hailing app Didi Chuxing, the year’s largest post-IPO valuation at $73 billion.

And there were many apps and services going public through other means as well. Gaming company Roblox went public through a direct listing, earning a valuation of $30 billion, and cryptocurrency platform Coinbase has earned the year’s largest valuation so far, with an $86 billion valuation following its direct listing.

Big Companies Going Public in 2022

As with every year, some of the biggest companies going public were lined up for the later half.

Tech will continue to be the talk of the markets. Payment processing firm Stripe was setting up to be the year’s biggest IPO with an estimated valuation of $95 billion, but got delayed. Likewise, online grocery delivery platform InstaCart, which saw a big upswing in traction due to the pandemic, has been looking to go public at a valuation of at least $39 billion.

Of course, it’s common that potential public listings and offerings fall through. Whether they get delayed due to weak market conditions or cancelled at the last minute, anything can happen when it comes to public markets.

This post has been updated as of January 1, 2022.