David Solomon, president of Goldman Sachs Group Inc., throughout an occasion on day 3 of the World Economic Forum in Davos, Switzerland, onJan 19, 2023.
Stefan Wermuth|Bloomberg|Getty Images
Goldman Sachs CEO David Solomon stated Tuesday he isn’t fretted about Apple’s brand-new cost savings account eclipsing Goldman’s own Marcus offerings however that he’s viewing carefully for “cannibalization.”
The Wall Street company reported first-quarter outcomes Tuesday, a day after Apple introduced its brand-new cost savings accounts with a yearly portion yield over 4%. The brand-new accounts bring Apple’s brand name and are administered through the iPhone, however Goldman Sachs is the business’s monetary partner.
“We’ve obviously worked very closely at the overlap between who holds credit cards and who has a Marcus deposit, and that overlap is small,” Solomon stated on his business’s profits call. “But we’ll obviously watch closely to see whether or not there’s any cannibalization.”
Solomon included that the Apple offering “is a way for us to try to open up another deposit channel” and stated “it’s always good for us to broaden our deposit base.”
The Apple-Goldman relationship is distinct because it combines 2 historical brand names in really various markets and highlights the degree to which some tech giants are delving into monetary services, possibly as rivals. Apple develops functions for the iPhone and its Wallet app, like its Apple Card charge card, while Goldman is the real bank behind the business’s monetary services.
Goldman has actually revealed strategies to end up being a big digital bank, maybe completing sometimes with Apple to register brand-new clients. For example, Goldman provides high-yield cost savings accounts throughMarcus CNBC has actually formerly reported that the bank’s consumer-focused department, which manages Marcus and Apple collaborations, has actually had problem with shelved tasks, management turnover and regulative probes.
Solomon stated Goldman would invite the deposits from Apple’s cost savings account and would release them within its own customer base.
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