- “Apple Card is big, but it’s also a beginning,” Solomon says in an internal memo.
- “In the decades to come, I expect us to be a leader in our consumer business, just like we are in our institutional and corporate businesses,” he says.
- The co-branded credit card has been rolled out to all U.S. customers, featuring cash-back policy of up to 3%, as well as a titanium, laser-etched physical card.
Yun Li | Dawn Giel
PUBLISHED TUE, AUG 20 2019
The Apple Card is the start of Goldman’s transformation into a consumer powerhouse, CEO says
David M. Solomon, Chairman and CEO of Goldman Sachs, speaks during the Milken Institute’s 22nd annual Global Conference in Beverly Hills, April 29, 2019 Mike Blake | Reuters
With the official launch of the Apple Card, Goldman Sachs is embarking on a multi-decade journey to becoming a leader in consumer banking just as it has been in Wall Street banking and trading, CEO David Solomon said.
“Apple Card is big, but it’s also a beginning,” Solomon said Tuesday in an internal memo obtained by CNBC. “In the decades to come, I expect us to be a leader in our consumer business, just like we are in our institutional and corporate businesses, with customer-centricity at the core of everything we do.”
“Apple Card makes a typically frustrating application process easy; it provides an interface with more useful information for the customer; and it places greater importance on customer privacy and security,” Solomon said.
Apple wanted Goldman to approve as many as 100 million-plus U.S. iPhone users and the bank is dipping into subprime lending with the card, CNBC previously reported.
Here’s the full internal memo from Solomon:
August 20, 2019
Goldman Sachs and Apple Co-branded Card Launches to the Public
Earlier this morning, our co-branded credit card with Apple launched to the public in the US. With a couple of taps on an iPhone, consumers will be able to apply for a credit card with Goldman Sachs. The launch stands as a milestone for our consumer business and the firm. I am proud of our team, this partnership with Apple and the development of a product that is worthy of our brand.
We’ve been in business for 150 years, but Main Street banking is new for us. Our partnership with Apple will accelerate customer-centric innovation in the credit card industry and is a testament to the remarkable progress we’ve made in just a few years through Marcus, a growing disruptor in consumer financial services. Today we are helping consumers take control of their financial lives with simple and transparent products, and we have $5 billion in loan balances, more than $50 billion in deposits and 4 million customers – all without the traditional brick and mortar branch model.
Apple Card makes a typically frustrating application process easy; it provides an interface with more useful information for the customer; and it places greater importance on customer privacy and security. As a beta user for the last few months, I’m a happy customer and use the card all the time both through Apple Pay and the titanium physical card.
Every time I visit the “Cookie Jar” – the section of the 26th floor at 200 West Street where the credit card business is being developed – I am impressed by the passion, energy and collaboration of teams across the firm’s divisions working on this product. It is a true demonstration of One Goldman Sachs.
Apple Card is big, but it’s also a beginning. With no real legacy technology or a longstanding consumer business to defend, we are positioned to innovate unlike many others in the industry. In the decades to come, I expect us to be a leader in our consumer business, just like we are in our institutional and corporate businesses, with customer-centricity at the core of everything we do.
Looking ahead, there will be new learnings and challenges – issues will arise, problems will occur and not every customer will be satisfied – but we will respond with agility, striving for continuous progress and looking to meet the expectations that people have of us. Thank you to everyone who made this launch possible.