David Solomon, chief government officer of Goldman Sachs Group Inc., throughout an occasion on the sidelines on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, Jan. 19, 2023.
Stefan Wermuth | Bloomberg | Getty Images
Goldman Sachs CEO David Solomon is not fearful about Apple’s new financial savings account overshadowing its personal Marcus choices, however he mentioned on Tuesday he is watching intently for “cannibalization.”
The Wall Street agency reported first-quarter outcomes on Tuesday, a day after Apple launched its new financial savings accounts with an annual share yield over 4%. The new accounts carry Apple’s model and are administered via the iPhone, however Goldman Sachs is the corporate’s monetary associate.
“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 mentioned on his firm’s earnings name. “But we’ll obviously watch closely to see whether or not there’s any cannibalization.”
Solomon added that the Apple providing “is a way for us to try to open up another deposit channel” and mentioned “it’s always good for us to broaden our deposit base.”
The Apple-Goldman relationship is exclusive in that it brings collectively two historic manufacturers in very completely different markets and underscores the diploma to which some tech giants are leaping into monetary companies, doubtlessly as rivals. Apple builds options for the iPhone and its Wallet app, like its Apple Card bank card, whereas Goldman is the precise financial institution behind the corporate’s monetary companies.
Goldman has introduced plans to turn into a big digital financial institution, maybe competing at occasions with Apple to enroll new prospects. For instance, Goldman affords high-yield financial savings accounts via Marcus. CNBC has beforehand reported that the financial institution’s consumer-focused division, which handles Marcus and Apple partnerships, has struggled with shelved initiatives, management turnover and regulatory probes.
Solomon mentioned Goldman would welcome the deposits from Apple’s financial savings account and would deploy them inside its personal consumer base.
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Source: www.cnbc.com