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Goldman CEO Denies Claims Of Apple Card Credit Biases

Head Of Goldman Denies Apple Card Credit Biases

David Solomon, the CEO of Goldman Sachs, is denying claims that gender bias is apparent in the algorithm it uses to determine credit limits for applicants, according to a report by Bloomberg.

He said he plans to address the issue fully.

“There’s no gender bias in our process for extending credit,” Solomon said. “There’s no question that different applicants can get different results, and that can be for a variety of reasons.”

The issue came to light after tech entrepreneur David Heinemeier Hansson tweeted that he was offered a credit limit 20 times higher than his wife’s, although she has a better credit score and they reported the same income. Some politicians, like presidential candidate Elizabeth Warren, said they want more information on how the algorithm works and whether it has a preexisting gender bias.

“We’re going to work over time to do more to deliver more transparency to our clients,” Solomon said. He said the Apple Card is working, demonstrated by the fact that it provides instant decisions. “We’re committed to working with Apple to improve that transparency so that it’s a unique and differentiated product.”

Goldman said marital status is not a criteria on which credit score is calculated. The bank also recently announced that it will allow for a shared credit line on a family plan, and that it is willing to talk to regulators and lawmakers about the card. Previously, only individuals were allowed to apply for the card, regardless of their marital status. Notable tech personality Steve Wozniak, who works at Apple, complained about the disparities between his credit limit and that of his wife; he said he was given a credit limit 10 times higher than she received.

“Some say the blame is on Goldman Sachs, but the way Apple is attached, they should share responsibility,” Wozniak said at the time.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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