Apple Card’s head of credit leaves for credit card startup X1

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  • An executive developing policies around creditworthiness for Apple Card has left the tech giant to join credit card startup X1.
  • Prior to Apple, X1’s new Chief Risk Officer, Abhi Pabba worked at Capital One, where he focused on credit card authorization.
  • X1 is backed by Silicon Valley venture capitalists such as PayPal founder Max Levchin and David Sachs.

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Apple’s credit head for Apple Card Abhi Pabba has left the company.

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According to X1 CEO Deepak Rao, Pabba, who works out of Apple’s Austin, Texas, office, will join California-based credit card company X1 as chief risk officer from next week.

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Pabba specializes in credit and risk assessment. Prior to Apple, he worked at Capital One, where he focused on credit card authorizations.

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Over the years, there have been a string of exits from Goldman Sachs’ consumer business, which handles the lending and issuance parts of Apple Card.

But the defection on the part of Apple has been less clear. The tech giant’s aim with Apple Card is not to generate revenue from strong lending decisions, but to make the iPhone more essential to its customers. Cards are primarily accessed and managed through the iPhone.

CNBC reported this week that Goldman Sachs is debating internally whether the company’s card debt, which primarily relates to Apple Card, has resulted in unacceptably high losses. A large percentage of loans are given to customers with low FICO scores. Apple Card also has automated customer service disputes due to the card’s rapid development.

Apple is also expanding into offering its customers credit through a feature called Apple Pay Later, which splits purchases into four weekly payments. Apple is making some of its credit decisions on a buy now, pay later product.

Pabba told CNBC about his job at Apple and Capital One, which involved monitoring metrics from credit card holders overall, including how much users are spending, what percentage of them are in delinquency and an average of accepted credit scores. Is.

“I would say these three” [metrics] There are very high standards, but you know, Capital One takes great pride in being very, very thorough with these things, and of course, Apple had similar standards as well,” Pabba said.

Pabba is expected to create X1’s underwriting policies, which will use alternative data in addition to traditional FICO credit scores, such as access to a bank account or information from Plaid, to determine credit limits and rates for customers.

x1 is Support from Silicon Valley venture capitalists such as PayPal founder Max Levchin and David Sachs, among others. Its core product is a credit card with deep app integration, which allows users to create new credit card numbers for personal transactions and monitor spending with ease.

X1 also plans to offer higher credit limits to certain customers, which can help keep overall credit utilization low.

The X1 currently has a waiting list for its credit card, which it says is currently used by thousands of people. It has also hired a new chief financial officer to position the company to increase sign-ups to accelerate growth.

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