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.