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.
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.
Goldman Sachs — the only company who can’t figure out how to make money from a credit card.
