Apple’s head of Apple Card credit, Abhi Pabba, has left the company.
Pabba, who works in Apple’s Austin, Texas office, will join California-based credit card company X1 early next week as chief risk officer, according to Deepak Rao, CEO of X1.
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Pabba specializes in credit and risk assessment. Before Apple, he worked at Capital One, where he focused on credit card authorization.
Over the past few years, there have been a sequence of exits are from Goldman Sachs‘the consumer business, which handles the lending and issuing divisions of the Apple Card.
But defected from Apple side was less clear. The tech giant’s goal with the Apple Card is not to generate revenue from strong lending decisions but to make the iPhone more essential to its customers. Cards are mainly accessed and managed through the iPhone.
CNBC reported this week that Goldman Sachs is debating internally whether the company’s card loans, mainly related to Apple Card, have unacceptably high losses. A large percentage of loans are given to customers with low FICO scores. Apple Card is also having problems with Automated customer service disputes because of the rapid growth of the card.
Apple is also expanding its credit offering to its customers through a feature called Apple Pay Later, which splits purchases into four weekly payments. Apple is processing some of its own credit decisions for it buy now, pay later.
Abhi Pabba, chief risk officer at X1
X1
Pabba told CNBC that his work at Apple and Capital One involves monitoring aggregate metrics from credit cardholders, including how much users are spending, what percentage of them end up ended as a violation and the average of the approved credit score.
“I will say these three things [metrics] It’s a pretty high level, but you know, Capital One takes great pride in being very, very thorough with these things, and of course, Apple has similar standards,” said Pablo.
Pabba is expected to develop X1’s underwriting policies, which will use alternative data, such as bank account access or information from Plaid in addition to a traditional FICO credit score, to determine Set credit limit and rate for customers.
X1 has support from Silicon Valley venture capitalists like PayPal founders, Max Levchin and David Sacks, among others. Its main product is a credit card with deep application integration, allowing users to generate new credit card numbers for personal transactions and easily track spending.
X1 also plans to offer a higher line of credit to some customers, which could help reduce total credit utilization.
X1 now has a waiting list for its credit card, which it says is currently being used by thousands of people. It also hired a new chief financial officer to position the company to increase registrations to accelerate growth.
