Apple Card contributes to another $667 million loss for Goldman Sachs: ‘We did not execute well’
Apple Card contributes to another $667 million loss for Goldman Sachs: ‘We did not execute well’
Back in January, we learned that Apple Card has been responsible for more than a billion dollars in losses for...
Goldman Sachs — the only company who can’t figure out how to make money from a credit card.
Earlier this year we learned those consumer banking losses have come mostly from Apple Card and a Goldman acquisition called GreenSky.
As for why Goldman is seeing such a tough time with its nascent consumer banking offerings, the company says the primary cause is loan-loss provisions which are when a bank has to compensate for greater than expected unpaid credit card balances and loans.
So the crux of it is they expected those interested in an Apple Card would successfully pay their bills more than they are? Interesting.
Curious to know how much the staple 0% financing feature comes into play. Like how many people got the card and put a $2k+ bill on it that they’re paying off in 24 months.