Apple wants to end credit-card partnership with Goldman Sachs
Apple has proposed ending its credit-card and savings account partnership with Goldman Sachs within the next 12 to 15 months, CNBC’s Leslie Picker reported, citing a person familiar with the matter.
The move, if it were to happen, would effectively end one of the highest profile partnerships between a bank and a tech company. It would also mean that Apple would need to find a new financial partner for its popular credit card, Apple Card, and its high-yield savings accounts under the Apple brand. Apple offers both its credit card and savings account through the wallet app on iPhones, but the banking backend is handled by Goldman Sachs.
Rocky Partnership with Goldman Sachs
When Apple first launched the Apple Card in 2019, Goldman Sachs CEO David Solomon was in attendance at a glitzy Apple launch event at its California campus. However, the partnership has been rocky in recent years as Goldman Sachs, under CEO David Solomon, has retreated from its previous consumer banking ambitions as costs stacked up. Goldman has also faced scrutiny from regulators into how it handles refunds and billing errors, and over alleged gender discrimination when determining credit limits.
Earlier this year, Goldman Sachs said that it would “consider strategic alternatives” for its consumer banking business. A Goldman Sachs representative declined to comment on the proposal from Apple.
Implications for Apple and Goldman Sachs
For Apple, the credit card and savings accounts are a way to add value and additional features to its iPhone, as well as bolster its quickly growing services business with fees. However, it’s unclear whether Apple has found a new partner or would consider bigger changes to its financial products if it were to exit the agreement with Goldman Sachs.
“Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives,” an Apple representative told CNBC. “The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them.”
Possible Impacts on Financial Products
The proposal from Apple to end its partnership with Goldman Sachs was previously reported by the Wall Street Journal. It’s also worth noting that earlier this same year, in August, Goldman Sachs had disclosed a probe into its US credit card division. CNBC’s Leslie Picker and Steve Kovach contributed to this story.
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