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Goldman Sachs CEO Denies Gender Bias In Credit Limits For Apple Card

davidsolomon nov21 lt

Goldman Sachs Inc. Chief Executive David Solomon on Thursday denied allegations of gender discrimination in setting credit limits for the Apple Card, which is administered by the financial services giant.

The CEO promised to deliver more transparency to the investment bank's clients when taking decisions.

Solomon's comments come after a social media furor earlier in November that Apple Card offered different credit limits for men and women, and that algorithms used to set limits for the card might be inherently biased against women.

"There's no gender bias in our process for extending credit. There's no question that different applicants can get different results, and that can be for a variety of reasons," Solomon told Bloomberg TV in Beijing during the New Economy Forum, being organized by BloombergMedia Group.

The Apple Card, Apple's first credit card, was introduced by the tech giant in March this year in partnership with Goldman Sachs and Mastercard. The card was rolled out to all U.S. customers in August.

Last week, the New York Department of Financial Services initiated a probe after a series of viral tweets by tech entrepreneur and web developer David Heinemeier Hansson about algorithms used for the Apple Card.

Hansson said the Apple Card gave him a credit limit 20 times greater than that of his wife, even though they have shared assets and she has a higher credit score. He called the card's "black box" algorithm a sexist program.

Hansson also tweeted that when approached Apple in an attempt to rectify this, he was told that credit limits are determined by an algorithm.

The tweets immediately went viral and were supported by Apple co-founder Steve Wozniak, who said he had a similar experience.

In response to the allegations, Goldman Sachs said at that time that the bank evaluates each individual's application for a credit card independently, based on factors such as his personal credit scores and how his debt has been managed. The bank added it does not make credit decisions based on factors like gender.

According to a Bloomberg report in early November, Goldman Sachs lent $10 billion in credit to Apple Card as of September 30, and customers had $736 million in the loan balances at the end of September.

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