Finance

Apple and Goldman Sachs’ High-Yield Savings Account Defies Speculation with $10 Billion in Deposits

The impressive $10 billion milestone in deposits serves as a vindication of the partnership between Apple and Goldman Sachs, despite the hurdles faced along the way.

Published

2 months ago

August 3, 2023

Samed Olukoya

Apple Inc. and Goldman Sachs Group Inc. have jointly announced a resounding success for their new high-yield savings account, which has garnered an impressive $10 billion in US deposits since its launch in April.

The achievement is a testament to the strength of their partnership amid concerns that the two corporate giants might part ways.

Apple’s foray into the financial sector has been marked by the integration of a cash-back reward program known as Apple Daily Cash, wherein an overwhelming 97% of users opt to have their rewards deposited into the high-yield savings account as disclosed by the tech giant in a statement released on Wednesday.

This unique offering is built into the Wallet app on iPhones, providing users with the convenience of a traditional savings account while offering an attractive interest rate of 4.15%.

Despite its success, the savings account’s rollout was not without its challenges. Several users reported difficulties in withdrawing cash promptly with some experiencing delays that stretched into days.

In response to these concerns, Apple’s CEO, Tim Cook, acknowledged in a June interview that the delays were caused by a security system designed to combat fraud. The company has since been working diligently to address these issues and ensure a smoother user experience.

Moreover, Goldman Sachs has faced its own set of hurdles in the realm of consumer financial services, particularly in its partnership with Apple for the Apple Card—a credit card that seamlessly integrates with the new savings account.

Also Read: Nigeria’s Naira Faces Escalating Foreign Exchange Pressure, Threatens to Surpass N1000/$ Mark

Losses incurred and engineering struggles have given rise to speculation about the future of the collaboration, which was further fueled by reports that Goldman Sachs was exploring talks with American Express Co. to potentially take over the Apple credit card and other joint services.

In the face of these challenges, executives from both Apple and Goldman Sachs have sought to reassure stakeholders and customers alike.

Jennifer Bailey, Apple’s top financial products executive, expressed elation at the enthusiastic reception of the new savings account among both new and existing customers. Likewise, Liz Martin, head of enterprise partnerships at Goldman Sachs, reiterated the bank’s commitment to delivering valuable products to Apple Card customers and creating an exceptional customer experience that promotes financial well-being.

The impressive $10 billion milestone in deposits serves as a vindication of the partnership between Apple and Goldman Sachs, despite the hurdles faced along the way.

The success of the high-yield savings account highlights the appeal of the offering to customers, positioning it as a robust financial solution in an ever-evolving digital landscape.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

16 hours ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.

Banking Sector

Currency in Circulation Surges by N1.7 Trillion Amidst Rising Cash Transactions

Published

17 hours ago

September 22, 2023

Investors King

The currency in circulation in Nigeria has surged by N1.7 trillion, driven by a surge in cash transactions.

According to data obtained from the Central Bank of Nigeria (CBN), as of the end of August, the currency in circulation rose to N2.7 trillion.

This substantial increase in currency in circulation comes after a 235.03 percent dip to N982.1 billion as of the end of February 2023 from N3.29 trillion at the close of October 2022, primarily due to the naira redesign policy spearheaded by the CBN.

However, the currency in circulation began its steady ascent once the policy concluded. Cash that had been previously withdrawn from circulation to promote electronic payments was reintroduced into the economy, contributing to this significant boost.

The data obtained from the CBN reveals that a whopping N2.3 trillion was removed from circulation during this period.

The CBN defines currency in circulation as all legal tender currency in the hands of the general public and within the vaults of Deposit Money Banks, excluding the central bank’s vaults.

The CBN further elucidated its methodology, stating that it employed an “accounting/statistical/withdrawals & deposits approach” to calculate the currency in circulation in Nigeria. This approach meticulously tracks the movement of currency in circulation on a transaction-by-transaction basis.

Under this methodology, each withdrawal made by a Deposit Money Bank at one of CBN’s branches results in an increase in currency in circulation (CIC), while each deposit made by a DMB at one of CBN’s branches leads to a decrease in CIC.

This surge in currency in circulation reflects the evolving landscape of financial transactions in Nigeria and underscores the importance of flexible monetary policies in facilitating economic growth and stability.

Finance

Oyo/Osun Customs Command Exceeds Revenue Target, Collects N47.4 Billion in Nine Months

Published

1 day ago

September 21, 2023

Samed Olukoya

The Oyo/Osun Area Command of the Nigeria Customs Service has reported a better-than-expected achievement in revenue collection, exceeding its targets while also making significant seizures of prohibited goods.

Outgoing Customs Area Comptroller, Babajide Jaiyeoba, made this announcement during the recent handover ceremony at the command in Ibadan, Oyo State.

Between January and September, the command generated N47.4 billion in revenue, according to Jaiyeoba. The customs area comptroller attributed this success to the dedicated officers and their unwavering professionalism, urging them to continue working as a cohesive team within the bounds of the law.

Under his leadership, the command also made seizures of prohibited goods valued at N308 million over the past nine months, a testament to their commitment to suppressing smuggling and upholding the customs regulations. Moreover, the command surpassed its revenue target set for the year 2022.

In a smooth transition of leadership, Ben Oramalugo assumed office as the new Comptroller. He emphasized the core duties of customs officers, which include revenue generation, trade facilitation, and the suppression of smuggling. Oramalugo pledged to uphold these mandates and called upon all officers to extend their cooperation to him as they did to his predecessor.

With these recent achievements and a committed leadership transition, the Oyo/Osun Area Command of the Nigeria Customs Service is well on its way to achieving even greater heights in revenue collection and ensuring compliance with customs regulations.