Goldman Sachs exec says winning customer loyalty with Apple Card more important than profi...



  • Reply 41 of 42
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Banks provide a range of financial services. Some of these they can charge for (and do - with enthusiasm!). However, some services do not have an obvious cost to the customer. For example, my UK bank does not charge me a penny for handling my pay check, paying bills automatically and a range of security systems to keep my money safe (well, safer than under my bed at home!). My bank could reasonably charge for these but doesn't - it hides these costs in overdraft fees, credit card interest rates etc. They bet that I will go overdrawn and fail to pay my credit card bill every now and then so that they can get back the money they have spent on the free services. I bet that I will never go overdrawn and will always pay my credit card balance off in 30 days. So far, I'm winning this bet. For people who don't or can't play as well as me... well, I'm sorry but thank you for your contribution to keeping my bank charges at zero.
    And customer loyalty is valuable. They have access to my money to play with (I'm sure they do) but they have to guarantee to give me back my money if I want it so the playing is at their risk. If I change banks (i.e. if I'm not loyal) they lose my money. Also getting a new customer is much more expensive than keeping an existing company so loyalty has an immediate cash benefit to them. Also, if my bank has treated me well I will be more likely to look to them for paid-for financial products than banks or finance houses I don't know. 
    Banks have to make money. They want to make money. They are not charities and do not claim to be. That said, play nicely with them and you should have no problem. I look forward to getting an AppleCard if they ever get as far as Brexit-crazy UK and hope to enjoy the services at no cost to me but this does not mean I have to believe that Goldman (or whoever) cares about me. That doesn't even enter the equation. Theres no need for angst or emotion about a credit card.

    You described the heart of free market capitalism:   Mutual Benefit.
    People tend to forget (and so do many companies now that they are owned by private equity firms) that each must benefit from the relationship for it to last (assuming that there is competition and alternatives available).
  • Reply 42 of 42
    AppleExposedAppleExposed Posts: 1,805unconfirmed, member
    The idea is making a maximum amount of money for both companies, that the sole purpose of this credit card or credit cards in general.  Let’s stop glorifying Apple and Goldman Sachs over a subpar credit card.  If they truly care about their customers it would at least be a post paid to not incurr any debt on the consumer at all.   People and their mindless stupidity about credit cards.
    Typical troll tactic. Ignore 99% of the industry and place the burden on Apple.

    Luckily unlike the 99%, Apple is giving the customer some privacy and new ways to enjoy the card.
    You on the other hand want Apple to give free money away. Ridiculous.
    Really? Credit cards provide convenience and access. There are millions of businesses that would have never made it off the ground with out the owners being able to leverage their cards when needed. The fact that these other companies have come out attacking the card as unprofitable and a bad business model is telling. The interest rates are just the beginning of the cost. They make a ton on fees that this card doesn’t charge. 

    Are you replying to the wrong post or agreeing with me?

    @kamelkamel ;
    edited June 2019
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