Each Apple Card customer cost Goldman Sachs $350

Apple Card

Analysts claim that Goldman Sachs is spending approximately $350 for each successful Apple Card signup and that the bank won’t be making profits until they retain a customer for an average of 4 years.

Goldman Sachs has already spent considerable money preparing for the launch of the Apple Card, including $1.3B on consumer services and $275 million on public-facing initiatives. Nomura has mentioned that because the Apple Card offers very competitive interest rates and no fees, the portfolio could face higher loss content and lower revenue compared to industry averages.

Approval of consumers with subprime credit scores won’t necessarily help the financial institution. There’s also the risk that the country will be having a recession, which could make Goldman Sachs lose money if it happens.

The report has come off the tails that Apple Card approvals are seen as overly generous, which led many to believe that the bank is taking unnecessary risks.

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