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Apple Card - Interesting read...

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Frequent Contributor

Apple Card - Interesting read...

Goldman Sachs reportedly spent $300 million developing the Apple Card — then Apple boasted that it was 'created by Apple, not a bank'

More.... https://markets.businessinsider.com/news/stocks/apple-snubbed-goldman-sachs-bank-spent-300-million-a...
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Valued Contributor

Re: Apple Card - Interesting read...

As far as marketing, it was a good move. 

Message 2 of 8
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Community Leader
Super Contributor

Re: Apple Card - Interesting read...

Oh boo hoo for GS. I’m 😭. Ten years ago today, Goldman Sachs was ‘toast’ and would have gone bankrupt if they had not been bailed out by the United States government and taxpayers.

So they didn’t get credit for the Apple card. So they were snubbed. So, they spent $300M in development. Yep, I hear the violins playing and I don’t care.
https://medium.com/@BetterMarkets/goldman-sachs-failed-10-years-ago-today-2097a82b6f2

DEC 2019: EX 816, TU 820, EQ 810
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|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 3 of 8
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Established Contributor

Re: Apple Card - Interesting read...

GS can dry their tears with the money they make off this Apple venture

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Message 4 of 8
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Valued Contributor

Re: Apple Card - Interesting read...

GS told Apple that even though they had zero credit card infrastructure they could get up and running in the time Apple wanted. You want to duplicate systems, services, manpower etc. that Chase, Citi, Bof A, even Synchrony has spent  decades building....just in a few years. Well that's going to cost money. A lot of money. 

If this is successful, they can leverage this into other cobranded cards or even their own cards. $300M is nothing if 5 years from now they have a card portfolio of their own cards and 2-3 more cobranded cards.

 

As someone who has had to use their customer service I wish they had spent $400M. Their CS reps always sound like no one was paying attention durring training. Read the story on a Reddit of a CSR literally asking "how did you get this number?" 😂

Message 5 of 8
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Frequent Contributor

Re: Apple Card - Interesting read...


@Morpho wrote:

GS told Apple that even though they had zero credit card infrastructure they could get up and running in the time Apple wanted. You want to duplicate systems, services, manpower etc. that Chase, Citi, Bof A, even Synchrony has spent  decades building....just in a few years. Well that's going to cost money. A lot of money. 

If this is successful, they can leverage this into other cobranded cards or even their own cards. $300M is nothing if 5 years from now they have a card portfolio of their own cards and 2-3 more cobranded cards.

 

As someone who has had to use their customer service I wish they had spent $400M. Their CS reps always sound like no one was paying attention durring training. Read the story on a Reddit of a CSR literally asking "how did you get this number?" 😂


We wouldn't even have to deal with Goldman Sachs if Citi wasn't such a thrifty bank and took the card assignment in the first place. 

 

But then again, Citi's customer service (outside of CitiGold) is trash anyways. 

Message 6 of 8
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Super Contributor

Re: Apple Card - Interesting read...


@VPExecutive wrote:

@Morpho wrote:

GS told Apple that even though they had zero credit card infrastructure they could get up and running in the time Apple wanted. You want to duplicate systems, services, manpower etc. that Chase, Citi, Bof A, even Synchrony has spent  decades building....just in a few years. Well that's going to cost money. A lot of money. 

If this is successful, they can leverage this into other cobranded cards or even their own cards. $300M is nothing if 5 years from now they have a card portfolio of their own cards and 2-3 more cobranded cards.

 

As someone who has had to use their customer service I wish they had spent $400M. Their CS reps always sound like no one was paying attention durring training. Read the story on a Reddit of a CSR literally asking "how did you get this number?" 😂


We wouldn't even have to deal with Goldman Sachs if Citi wasn't such a thrifty bank and took the card assignment in the first place. 

 

But then again, Citi's customer service (outside of CitiGold) is trash anyways. 


I read on one of the big sites that Capital One was approached for an Apple credit card years ago but Steve's demands were just too much. He didn't want basically anyone to be declined. 

It's kind of funny that GS is complaining about Apple. They knew well in advance that Apple is a challenging client. They're big, they have lots of money, and they know how to use that to their advantage in negotiations like any other successful corp. 

 




Message 7 of 8
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Regular Contributor

Re: Apple Card - Interesting read...


@Morpho wrote:

If this is successful, they can leverage this into other cobranded cards or even their own cards. $300M is nothing if 5 years from now they have a card portfolio of their own cards and 2-3 more cobranded cards.

This is undoubtledly their strategy. In 5 years there could be a whole new family of cards out of Goldman that rival Chase and AMEX for a new trifecta. Also, don't be surprised when Apple unleashes a $1,500 AF Apple Ultimate Black card. 

 

Competition is good.

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