Yahoo finance: Yahoo is poised to become a major player in the $1.6 trillion global finance industry
By Mike Daley | Staff WriterA few weeks ago, Yahoo was at the forefront of a major tech-to-finance merger.
Now, the company is looking to be the new face of the global finance world.
While the merger could prove to be one of the most controversial and lucrative in history, the potential for the two companies to play off one another is undeniable.
Yahoo CEO Marissa Mayer, who recently became the first female CEO of a Fortune 500 company, is already building a company that could compete with PayPal and Square, a major Wall Street player that already has its own financial technology unit.
The question is whether the two firms will be able to reach their full potential.
“They have the potential to become one of our biggest financial services companies,” said Mark Muro, an analyst with RBC Capital Markets.
“The question will be: Is Yahoo a one-man show, or is they going to be a one of Wall Street’s largest financial services players?”
The company already has a presence in finance.
Yahoo Finance, which is based in San Francisco, helps companies manage their money and is the largest online finance marketplace in the world.
Yahoo’s website provides more than 200,000 financial tools and services, including investing, tax and credit, and investment-focused investing.
But Yahoo’s business isn’t all about finance.
The company’s chief financial officer, David Yee, has also been trying to build out a global financial presence.
Yahoo will become the first major U.S. tech company to operate a bank in a global market, according to Reuters.
“Yahoo is a leading global financial services company, providing financial services to more than 90% of Fortune 500 companies, as well as a significant portion of the financial industry, according the company,” Yahoo Finance said in a statement.
“We are committed to building a strong, growing financial services business that continues to meet the needs of global consumers and businesses and is aligned with the evolving needs of the future.”
Yahoo’s investment arm is also making a play for the financial services market.
Yahoo plans to invest $5 billion in its new finance arm, according Bloomberg, and the company said it would also expand its investment banking arm and its insurance arm to $20 billion.
While Yahoo Finance is one of Yahoo’s main financial services businesses, Yahoo Finance will not be part of the company’s investment strategy.
“Yahoo Finance will continue to focus on our core business of offering high-quality financial products and services and we expect that to be its primary focus going forward,” Yahoo said.
Yahoo also announced a partnership with online-only bank Wealthfront, which has a large presence in the U.K., France and the U-S.
A large online lender, like PayPal and Amazon, is increasingly seeing interest from the tech industry.
“We are delighted to partner with Yahoo Finance in the pursuit of a more sustainable future,” said Wealthfront CEO Ben O’Brien.
Financial technology companies like PayPal, Square and SquareTrade, as we know them today, were once a few companies trying to make money by using technology to automate payment processing.
However, they were quickly disrupted by competitors like Amazon and Google.