David Solomon, CEO of Goldman Sachs Group Inc., during an event on day three of the World Economic Forum in Davos, Switzerland, on Jan. 19, 2023.
Stefan Wermuth | Bloomberg | Getty Images
Goldman Sachs Executive Director David Solomon said Tuesday he’s not worried of Apple a new savings account that dwarfs Goldman Marcus’ own offerings, but that he is watching closely for “cannibalization.”
The Wall Street firm reported first-quarter results on Tuesday, a day later An apple launched its new savings accounts with an annual percentage yield of more than 4%. The new accounts are Apple-branded and administered via iPhone, but Goldman Sachs is the company’s financial partner.
“Obviously we’ve worked very closely on the overlap between who holds credit cards and who has a Marcus deposit, and that overlap is small,” Solomon said during his company’s earnings call. “But we will obviously be watching closely to see whether or not there is cannibalization.”
Solomon added that Apple’s proposal “is a way for us to try to open up another deposit channel” and said it’s “always good for us to expand our deposit base.”
The Apple-Goldman tie-up is unique in that it brings together two historic brands in very different markets and highlights the extent to which some tech giants are moving into financial services, potentially as competitors. Apple builds features for the iPhone and its Wallet app, like its Apple Card credit card, while Goldman is the actual bank behind the company’s financial services.
Goldman has announced plans to become a major digital bank, perhaps sometimes competing with Apple to sign up new customers. For example, Goldman offers high-yield savings accounts through Marcus. CNBC previously reported that the bank’s consumer-focused division, which manages the Marcus and Apple partnerships, is grappling with delayed projects, leadership changes and regulatory probes.
Solomon said Goldman would welcome deposits from Apple’s savings account and deploy them to its own client base.
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