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Goldman Sachs' Apple pairing furthers bank's mass-market ambitions

Updated : March 27, 2019 08:42 AM IST

Goldman is entering a crowded market for co-branded cards where retailers often have the upper hand, and analysts question how much tolerance its shareholders will have for growing the bank's fledgeling consumer business through credit card lending.
But banks have been increasingly willing to take less favourable deals because post-financial crisis regulations make the credit card business attractive for lenders, which are required to hold less capital against such debt than against other assets.
The Apple Card's wide interest rate range indicates that some customers might have lower credit scores, said Josh Siegel, chief executive of StoneCastle Financial Corp. However, the bank may not necessarily keep that risk on its books.
Goldman Sachs' Apple pairing furthers bank's mass-market ambitions

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