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Apple Card forced Goldman Sachs to give a loan of about $ 10 billion



Apple introduced its first credit card, the aptly named Apple Card, in August. With the introduction of the new Apple Card, some of its first members had no credit history or below average credit scores. As of September 30, Goldman had committed about $ 10 billion and customers had $ 736 million in credit balances, claims show.

Apple Card has an Apple branding and is issued through Goldman Sachs and operates on the Mastercard network. It is accessible only to iPhone users and works just like any other credit card – you can use the physical card in any ordinary place, as well as inside Apple Pay to make contactless payments with the iPhone.

The card is Goldman & # 39; s latest intervention in the consumer retail business since the creation of the online Marcus brand in 201

6. Marcus provides unsecured personal loans, including to credit card debt users.

While Apple takes center stage, the bank slows Marcus growth, which stays at $ 4.8 billion.

Nomura analysts predicted in August a report would take four years for Goldman Sachs even punched an Apple Card customer, assuming $ 350 was needed to acquire the customer, and that person was spending $ 5,000 a year with an 18.5% APR. Analysts wrote that Apple's desire to "approve as many iPhone customers as possible effectively puts [Goldman Sachs] in a position to have to approve applications for people with lower average credit ratings."

In his October earnings call, the bank's chief financial officer, Stephen Scherr, said the percentage of revenue spent on employee pay is expected to decline as the company embarks on technological endeavors and "four key projects "- including Apple Card, which is her first credit card, and Marcus, an online brand designed to be more consumer-focused. In the most recent quarter, the average pay per employee was $ 72,249, down from $ 83,168 a year earlier.

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