Sina US stocks were reported by the Wall Street Journal on the 8th Beijing time.AppleThe company (Apple Inc., AAPL) provides investment banking servicesGoldman Sachs GroupGoldman Sachs Group Inc., GS has raised tens of billions of dollars for it. Now Goldman Sachs Group still wants toAppleCustomer financing, providing hundreds of dollars at a time.
Goldman Sachs Group is in talks with Apple Inc to provide loans to customers who buy his mobile phones, watches and other equipment, according to people familiar with the matter. For example, customers who buy a $1000 iPhone X can borrow money from Goldman Sachs Group instead of using their usual high-interest credit card.
The negotiations between Apple Inc and Goldman Sachs Group are still going on, and they may still fail to reach an agreement. A spokesman for Goldman Sachs Group declined to comment. Apple Inc didn't respond to a request for comment.
As Goldman Sachs Group strives to develop his new consumer banking business, the partnership is a wonderful move for Goldman Sachs Group. Better known as an elite adviser to companies and governments, the investment bank is no longer popular in traditional areas of advantage, such as trading. Goldman is aggressively developing retail banking and general loans to seek growth.
In 2016, Goldman Sachs Group launched an online loan platform, Marcus, to help users refinance credit card debts. Goldman Sachs Group is now developing a point-of-sale loan business, providing loans to shoppers at the cashier, effectively finding these customers ahead of time, according to people familiar with the matter.
Consulting firm First Annapolis estimates that consumers borrowed more than $200 billion using retail credit cards or point-of-sale loans when shopping in 2017. About $80 billion of that is spent on high-priced goods such as furniture and electronics that could take months to settle, generating more interest income as borrowers roll over the balance of their arrears month by month.
By offering lower-cost loans, Goldman Sachs Group hopes to get a piece of the business. Goldman Sachs Group charges 12% interest on an ordinary Marcus loan, while the interest on a credit card may exceed 20%, and charges late fees and other fees.
Establishing partnerships with large retailers such as Apple Inc is the key. These retailers will bring Goldman Sachs Group millions of customers who are hard to find on its own.
Apple Inc teamed up with Citizens Financial Group Inc. In 2015 to launch a plan for the regional bank to provide zero-interest loans for iPhone upgrades and higher-interest loans for consumers who buy other devices. Part of Goldman Sachs Group's talks with Apple Inc involved taking over some aspects of the upgrade plan. It is unclear whether there will be a change in the way Citizens outstanding loans are handled. The bank, based in Providence, Rhode Island, had no immediate comment.
(source: Wall Street Journal Chinese website)