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Goldman Sachs is watching for ‘cannibalization’ from Apple’s new savings account

David Solomon, chief executive officer of Goldman Sachs Group Inc., during an event on day three of the World Economic Forum in Davos, Switzerland, on Jan. 19, 2023.

Stefan Wermuth | Bloomberg | Getty Images

Goldman Sachs CEO David Solomon said Tuesday he isn’t worried about Apple’s new savings account overshadowing Goldman’s own Marcus offerings but that he’s watching closely for “cannibalization.”

The Wall Street firm reported first-quarter results Tuesday, a day after Apple launched its new savings accounts with an annual percentage yield over 4%. The new accounts carry Apple’s brand and are administered through the iPhone, but Goldman Sachs is the company’s financial partner.

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“We’ve obviously worked very closely at the overlap between who holds credit cards and who has a Marcus deposit, and that overlap is small,” Solomon said on his company’s earnings call. “But we’ll obviously watch closely to see whether or not there’s any cannibalization.”

Solomon added that the Apple offering “is a way for us to try to open up another deposit channel” and said “it’s always good for us to broaden our deposit base.”

The Apple-Goldman relationship is unique in that it brings together two historic brands in very different markets and underscores the degree to which some tech giants are jumping into financial services, potentially as competitors. Apple builds features for the iPhone and its Wallet app, like its Apple Card credit card, while Goldman is the actual bank behind the company’s financial services.

Goldman has announced plans to become a large digital bank, perhaps competing at times with Apple to sign up new customers. For example, Goldman offers high-yield savings accounts through Marcus. CNBC has previously reported that the bank’s consumer-focused division, which handles Marcus and Apple partnerships, has struggled with shelved projects, leadership turnover and regulatory probes.

Solomon said Goldman would welcome the deposits from Apple’s savings account and would deploy them within its own client base.

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