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Cannibalization is being monitored by Goldman Sachs due to Apple’s bank account plan

The bank released its first-quarter results on the same day that Apple unveiled its new savings accounts, which offer annual returns of over 4% and will be managed via iPhone. Apple is also entering the competition of banks in another market: it will also launch a buy-now-pay-later loan service.

David Solomon says there is little overlap between the customer base of Goldman Marcus’ savings accounts and Apple’s offerings, but he will be watching closely for any changes. He also stated that the Apple account offers a new deposit channel for Goldman and that it is always good to broaden the customer base, writes the CNBC.

The partnership between Apple and Goldman is unique in that it brings together two very different brands in different markets and highlights the trend of tech giants becoming increasingly involved in financial services. Apple is planning features for the iPhone and Wallet, such as the Apple Card credit card, while Goldman is involved in the project as the bank behind the company’s financial services.

Goldman has already announced plans to become a major digital bank and compete with Apple for new customers. It currently offers high-yield savings accounts through Marcus, but the consumer-focused division that oversees Marcus and Apple’s partnership has been plagued by sidelined projects, management changes and regulatory probes.

Solomon stressed that Goldman would be happy to take deposits from Apple’s savings account and combine them with its existing services. It’s not yet known if Apple’s savings account will affect Marcus’ growth, but the two products will likely continue to coexist.

Cover photo: David Solomon, CEO of Goldman Sachs. Source: Stefan Wermuth/Bloomberg via Getty Images.