During an earnings call for Goldman Sachs, chief financial officer Stephen Scherr responded to a question and said that the bank decides who gets the Apple Card, not Apple (via Business Insider).
The question came from RBC Capital Markets analyst Gerard Cassidy, who asked if Apple’s marketing for its credit card could make it difficult to crack down on debtors in a recession where default rates rise.
Are you going to be hamstrung trying to collect those delinquencies because of the way it’s been branded as an Apple Card, and it’s not a bank?
To which Mr. Scherr replied:
Whoever lays claim to the creation of the card, there’s only one institution that’s making underwriting decisions, and that’s Goldman Sachs.
Notably, in its marketing Apple stresses that its credit card is “created by Apple, not a bank.” But Mr. Scherr said Goldman Sachs has the final say, because it’s the one that manages the back end, which according to CEO David Solomon runs on Amazon Web Services (AWS).