What it is:
Apple Card users can move Apple rewards and more funds into a Goldman Sachs savings account and earn interest. Interest pending due to rapidly rising rates.
Context:
Apple has been expanding its consumer financial services offerings. Apple has a payments network with Apple Pay and a credit card, all mobile. Goldman Sachs has been the chosen one partnering with Apple for its infrastructure and lending.
Relevance:
With interest rapidly rising to bring down inflation, interest rates haven’t really moved for savings accounts. Goldman could offer a more competitive interest rate (national average around 0.1-0.2%). With Apple’s network they get an easy distribution pipeline
With this new offering Apple will own more of the consumer’s wallet and financial OS, which they’ve already done with all our computers and phones and iCloud. Apple is / will be the first big tech company to foray into financial services.
Goldman is winding Marcus down. Good timing for Goldman to partner with Apple and gain a whole slew of deposits.
Implications for data, KYC, undewriting/credit, and identity. Apple wallet could be the gatekeeper.
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