Goldman Sachs and Apple May End Their Credit Card and Savings Partnership
Goldman Sachs CEO David Solomon and Apple may be headed for a separation. Apple has reportedly proposed ending its credit card and savings account partnership with Goldman Sachs in the next 12 to 15 months, according to a source familiar with the situation.
High-Profile Partnership at Risk
If this move takes place, it would mark the end of one of the most prominent partnerships between a bank and a tech giant. Additionally, Apple would be forced to seek a new financial partner for its popular Apple Card and high-yield savings accounts under the Apple brand. Although Apple presents these products through the wallet app on iPhones, the banking processes behind the scenes are managed by Goldman Sachs.
When Apple initially launched the Apple Card in 2019, Goldman Sachs CEO David Solomon attended the glamorous launch event at the California campus. However, recent developments have strained the once-close relationship between the two companies.
Trouble in Paradise
Goldman Sachs, under the leadership of CEO David Solomon, has pulled back on its consumer banking plans due to mounting costs. The company has also faced regulatory scrutiny related to how it handles refunds and billing errors, as well as allegations of gender discrimination in credit limit decisions.
Earlier this year, Goldman Sachs mentioned that it was contemplating “strategic alternatives” for its consumer banking division in light of these challenges.
For Apple, credit card and savings accounts are a means to enhance the iPhone’s value and expand its growing services business. It is uncertain if Apple has found a new partner or if it would consider significant revisions to its financial products in the event of a split with Goldman Sachs.
An Apple representative affirmed the company’s commitment to delivering exceptional financial services to its customers, emphasizing the positive reception of the Apple Card and its dedication to innovation.
Wall Street Journal Report
The Wall Street Journal had earlier reported on Apple’s proposal to end the partnership with Goldman Sachs. However, a Goldman Sachs representative declined to comment on the matter.
Leslie Picker and Steve Kovach from CNBC have contributed to this story.