Goldman And Apple Deliberating On A New Business Idea
Goldman Sachs Group based in Wall Street has been in business with Apple Inc. for some time now, working with the tech giant company as its official investment financial house. The financial company recently made a huge sum of money running into billions of dollars for Apple, and now, the company is about to add more flavor to the recipe by creating banking slots for the customers who patronize Apple. A ticket worth some handful of hundreds of dollars once in a while will do the magic.
Ability to buy new iPhone X With A Loan
According to retail business observers who know how these things work, Goldman Sachs is deliberating on giving out the financial giveaway to customers who buy gadgets such as watches and phones from the stables of Apple. Those who wish to buy an iPhone X with the price tag of $1,100, could request for a loan instead of using their credit cards which would still demand neck-breaking interest percentages later, and the loan request will be granted directly from Goldman Sachs.
Although the deal is still being deliberated upon by the two firms, yet there is no guarantee that it will work out eventually. Apple Inc. representatives are yet to say anything about it, likewise Goldman’s mouthpiece, who refused to make any comment on the issue when he was being approached for questions.
Improving Customer Base
Goldman is strategizing logical means of improving their customer base through this proposed business collaboration, and it hopes to make this accomplishment. The popular investment bank is reputed to be a creme de la creme counselor to big corporate organizations and different levels of governments. It’s courting the concept of retail bank services and lending in a lucid-vanilla method, with the view of developments in some conventional aspects of sturdiness, such as slump trading.
Goldman introduced an online robot named Marcus two years ago. The robot is meant to be a lender which assists people to renew their debt on credit cards. Now it’s developing a business with a financing system of “sales-point” which will provide customers at exit points with loans too. The insiders from Goldman’s company are optimistic that it would seek out customers earlier than expected.
Billions Borrowed For Shopping Activities
A consulting organization known as First Annapolis made an estimation which shows that in 2017, customers who patronize retail stores borrowed over $215 billion for shopping activities, with their sales-point loans and retailers’ connected credit cards. About $80 billion was spent on expensive items such as electronics, appliances and furniture, a huge debt that couldn’t be paid completely in the space of many months. This resulted in the filing of more interest rates because debtors keep spilling over the balances one month after the other.
Goldman is working towards pumping some profits into this innovation by providing a loan with a low-cost attachment. 13% is the interest rate the investment bank charges on every average loan acquired through their online lender, Marcus, while 22% and above can be charged on credit cards, and also attract delayed fees and similar levies.
Goldman Will Provide Loans
The investment company is leaving no stone unturned as it proposes this partnership with Apple Inc. because it knows the importance of this step. When such collaborations with behemoths in the retail businesses are sealed, the retail companies will find it easier to gather millions and more clients who would be naturally more difficult for companies like Goldman to do, even if they try very hard.
In October 2017, Goldman Sachs employed Scott Young who once worked at Citigroup Inc. He controlled many retail connected credit-card business collaborations and over-saw the nailing of the affiliation between a wholesale outfit called Costco Corp. and American Express Co. Scott is expected to seal such juicy deals of that nature for the betterment of Goldman, which will foresee the plans to sponsor purchases such as furnishings at homes, orthodontics and holiday trips. Close sources to the bank said that the first step that will be taken by Goldman is to provide loans that resemble Marcus’ lending services. However, it’s looking at how to add traditional credit cards in the form of store system along the line.
The emergence of Goldman into sales-point lending will make a rival to new startups in the financial and technology industries, such as Affirm Inc., which stretches its loans to the ends of shoppers on the internet, and GreenSky LLC, that sponsors selective medical setups and projects that enhance homes. In the last few weeks, $400 million was jointly contributed by both companies to spread their tentacles into untapped industries.
More in Business
Here’s How Americans Are Spending their $1,200 Stimulus Checks
When the Great Recession wreaked havoc in the economy in the late 2000s, Americans received stimulus checks from the federal government to help...May 20, 2020
Students Looking for Extra Income Can Apply for These Three Online Jobs
Students usually have limited budgets. And with unexpected expenses threatening to mess with those funds, most of them are now considering...May 15, 2020
The Five Most Important Things You Need To Consider When Getting a Personal Loan
A personal loan means borrowing from a lending entity, may it be a bank or some other credit provider. It’s...May 15, 2020
A Step-by-Step Guide on How to Spend Less and Save More in 2020
Most New Year’s resolutions involve the phrases “spend less” and “save more”. However, a lot of people end up failing to...May 13, 2020
Are You Being Forced into Early Retirement? Here’s are Some Options You Can Choose for a Better Future
Though the current pandemic has put financial stress onto many American households, it has become a nightmare for older Americans who...May 11, 2020
Retirement 102: Tips on Saving More for High Net Worth Individuals
Reaching the age of retirement and actually retiring is a huge achievement almost for everyone. Unfortunately, it’s a crossroads that numerous...May 10, 2020
Spending More Than Usual for Quarantine Meals? Here’s How to Trim Down Your Budget
More people have been turning to the art of cooking as a way to de-stress amid stay-at-home orders. Some have made...May 7, 2020
Entrepreneurs are Now Finding it Easier to Secure PPP Funds in the Second Round of Applications
The Paycheck Protection Program or PPP was established as a forgivable loan program for small businesses through the coronavirus relief law...May 6, 2020
TAXES 101: Tax Tips for the Unemployed Amidst the Outbreak
According to the U.S Department of Labor, 26.5 million Americans have marked themselves as unemployed. These numbers don’t account for the...May 5, 2020