Goldman Slowed Personal Lending for Marcus after Apple Card Launch

Goldman Sachs slowed originations for their personal loan product through Marcus after they launched the Apple Card; “The slowing pace of growth in our Marcus unsecured loan business reflected the anticipated growth in our credit card lending from the launch of Apple Card,” Chief Financial Officer Stephen Scherr said Wednesday during the company’s quarterly earnings call according to American Banker; the company has seen more than $2bn in credit card loans outstanding and have also acquired $60bn in deposits which was 67 percent higher than the previous year; losses on consumer loans ticked up with the net charge off rate rising to 0.6 percent from 0.5 percent; while Apple has garnered most of the attention for the credit card Goldman makes the underwriting decisions as Scherr explained in the same call, “Notwithstanding whoever lays claim to the creation of the card, there’s only one institution that is making underwriting decisions. And that’s Goldman Sachs.” American Banker