Apple’s foray into banking

Last month, Apple effectively dropped the mic on the nation’s banking industry. While the average bank is paying less than a half a percent on savings accounts, the $2.6tr technology company announced it would be offering 4.15pc annual returns to savers — no minimums, no lockups and Federal Deposit Insurance Corporation (FDIC) insured. The new product rollout comes at a time when regional banks are scrambling in the wake of the Silicon Valley Bank crisis to maintain their deposit bases, and cash-starved fintech startups are likewise struggling. Technically Apple doesn’t have a banking license. It is fronting for Goldman Sachs Bank USA, otherwise known as Marcus, which has a state charter and is FDIC-insured. In fintech parlance, Apple is a neobank like Chime, Revolut and Monzo — except its brand strength is unparalleled given that there are more than 2bn iPhones globally, now serving as Goldman’s branch network.

(Adapted from “Why Apple’s Partnership With Goldman Is The Future Of Banking,” by Emily Mason, published on Apr 24, 2023, by Forbes)

Inclusive employment

As the US economy recovers following the pandemic-induced recession, employers are scrambling to fill almost 10m vacant jobs. At the same time, more than 70m (1 in 3) American adults have some form of criminal record, which creates substantial — and often completely unreasonable — barriers to employment. Businesses large and small are increasingly looking to tap into the justice-impacted workforce to meet demand while becoming more inclusive. Following the murder of George Floyd in 2020, there has been an ongoing reckoning for the US justice system, and there remains widespread opportunity to combat the vast inequity mass incarceration perpetuates. Helping people with records bridge successful pathways to meaningful work is a way to do both. Such efforts can do more than just offer employers access to a diverse and underutiliaed talent pool. In the US, 1 out of 4 Black men can expect to spend time in prison — resulting in Black males having the lowest labor force participation among men.

(Adapted from “Unlocking The Potential Of Justice-Impacted Talent,” by Ben Cumming, published on April 21, 2023, by MIT Sloan Management Review)

The power of humour for women

The stereotype that “women aren’t funny” pervades pop culture. But is it true? The authors analysed more than 2,400 TED and TEDx talks, as well as more than 200 startup pitches, and found that female speakers who used more humor were more popular and perceived as more influential and inspiring than both less-funny women and comparably-funny men. They suggest that this is because humor conveys both warmth and competence, thus helping female presenters break free from the warmth-competence double bind that so often keeps women from exerting influence in professional settings. Of course, humor won’t be effective in every setting — and jokes that work well for one speaker in one context may not be as effective in another. But when done right, the authors’ research demonstrates the power of humor to overcome bias against women and help them succeed in public arenas.

(Adapted from “Research: Being Funny Can Pay Off More for Women Than Men” by Ella Miron-Spektor et al, published by the Harvard Business Review)

How to manage a newbie boss

Every boss must start somewhere — with their first direct report. Here are a few types of first-time managers you may encounter, and ways to ways to manage them. 1) The hands-off boss. They may lack the skills to provide direct feedback. Ask them for a weekly one-on-one meeting and come prepared with an agenda. 2) The distracted boss. A newly promoted leader will have a new role to learn that’s why it can be helpful to have other mentors inside your organisation. 3) The overbearing boss. A promoted person is eager to prove that they have what it takes to succeed. When your boss assigns you a task, clarify ownership and align on what success looks like. 4) The friendly boss. Balancing the friend/boss dynamic can become challenging. If you’re ever put into an uncomfortable situation, work to establish new boundaries.

(Adapted from “How to Work Under A First-Time Manager,” by Irina Cozma, published by HBR Ascend)

Published in Dawn, The Business and Finance Weekly, May 1st, 2023