Goldman Sachs CEO calls Apple Card launch the 'most successful' ever

One of the world's largest investment banks leveraged Apple's installed base to wrap its arms around retail banking.

From CNBC's Hugh Son, who got the scoop:

Goldman Sachs CEO David Solomon called his bank’s rollout of the Apple Card “the most successful credit-card launch ever.”

“In three short years, we have raised $55 billion in deposits on the Marcus [savings account] platform, generated $5 billion in loans, and built a new credit-card platform and launched Apple Card,” Solomon said, adding “which we believe is the most successful credit-card launch ever.”

Continuing on the Apple Card, which the bank built in partnership with the iPhone maker, Solomon said that “since August, we’ve been pleased to see a high level of consumer demand for the product. From an operational and risk perspective, we’ve handled the inflows smoothly and without comprising our credit underwriting standards.”

The bank is also building “next generation” electronic trading platforms and a new corporate cash management business, he said.

“Taken together, these investments draw on our returns in the short term, but are critical to expanding our capabilities and our competitive position,” Solomon said.

My take: Note that the $55 billion in deposits Solomon mentions is not from Apple Pay alone, but rather the sum of deposits made since Goldman Sachs' began its push into retail banking.


  1. Gregg Thurman said:
    Would he listen if they did?

    October 15, 2019
  2. Robert Paul Leitao said:
    Not only does the Apple Card deliver a “value added” for participants in Apple’s eco-system, it’s the most intuitive credit card I’ve ever used. It’s expected Goldman Sachs would use the Apple Card as a springboard to launch additional consumer-focused services.

    Apple’s US customer base by-and-large provides an attractive market for the delivery of financial services and I wouldn’t be surprised to see more services offered to customers by Goldman Sachs in partnership with Apple.

    October 15, 2019
    • Gregg Thurman said:
      I continue to believe that Apple will purchase MasterCard. Apple is using MS’s transaction network, and paying for the privilege. In 5 years AppleCard use may be high enough for Apple to support its own network, or buy someone else’s.

      The befit of owning MasterCard extends beyond its backbone network. Consider the number of enterprises that accept MC worldwide. Reduce the monthly merchant fee to all those that accept Apple Pay and watch what happens to the number of retailers that begin accepting it.

      Then there is MC’s user base. Converting them to AppleCard/Apple/Debit could make AppleCard the #1 credit/debit card worldwide.

      Once inside the Apple ecosystem there’s no telling what the impact would have on Mac, iPad, Apple Watch and Services revenue.

      October 15, 2019
  3. Kathy Corby said:
    Ha, Philip, I couldn’t figure out the relevance of the illustration you chose– all that came to mind was ….”sucker…”
    But I guess it had to do with wrapping its arms around retail banking, huh?

    October 15, 2019
  4. Fred Stein said:
    Hats off to Apple. Apple Card is both innovative and disruptive.

    Ironically, when launched most analysts said, “ho hum.”

    Apple wins big, being the low cost provider. Apple’s user base is better off financially so less default risk. Apple’s security nearly eliminates fraud risk. Apple deliberately tries to keep card holders out of debt. That’s good.

    Sadly other card companies try to get their card holders to carry balances and then charge usurious rates. That’s bad. It’s bad for the users who default. It also means the rest of their users must pay higher rates to cover the losses of card holders who get trapped.

    October 15, 2019

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