Experts Debate If Apple's Goldman Credit Card Has Sexist Credit Checks

Apple Inc.'s (NASDAQ: AAPL) foray into the financial services industry is off to a bumpy start, with Cupertino facing allegations of sexism in the

Benzinga · 11/11/2019 19:24

Apple Inc.'s (NASDAQ: AAPL) foray into the financial services industry is off to a bumpy start, with Cupertino facing allegations of sexism in the review process for its new Apple Card. 

Cramer: Credit Approved On The Individual

Apple's Goldman Sachs Group Inc (NYSE: GS) card uses a simple approach to evaluating each client's credit worthiness. CNBC's Jim Cramer said on "Squawk on the Street" Monday.

Goldman Sachs evaluates applicants on their own individual merit, and the process is consistent with what "Goldman thought and Apple wanted," Cramer said. 

"Everybody should have their own rating, which by the way is not necessarily a bad thing," he said. "Fifty percent of marriages end in divorce."

Issue Larger Than Apple

The algorithms are akin to a "black box" that may have been designed by humans with an inherent bias, Joanne Lipman, a journalist and distinguished journalism fellow at the Institute for Advanced Study in Princeton, said on CNBC's "Squawk Box" Monday. 

The issue is "so much larger than Apple," as inherent bias could be widespread across "any company that is using algorithms to make decisions," Lipman said.

"We should know what's in those algorithms," she said."And it's going to get even more extreme with machine learning."

NYFS Superintendent Sheds New Light

The New York Financial Services is looking into allegations Goldman Sachs is discriminating against women who are "equally or more qualified" than men to receive the benefits of the credit card, NYFS superintendent Linda Lacewell said on CNBC's "Squawk Alley" Monday.

Discrimination against any one group is illegal in New York, and the organization will take a look into allegations of wrongdoings, she said. 

Companies ca not use the excuse that wrongdoings were conducted by a machine irrespective of intent, Lacewell said.

The NYFS has already contacted Goldman Sachs and requested information on its algorithm, and the two sides will likely gather as early as Tuesday, she said. 

Apple shares were trading 0.6% higher at $261.71 at the time of publication, while Goldman Sachs shares were down 1.5% at $219.57. 

Related Links:

Apple Card May Bring New Customers, But Analyst Says Effect On Goldman Sachs Will Be Minimal

With Apple Card, Is Goldman Sachs No Longer Exclusively For The Rich And Famous?

Photo courtesy of Apple.