Apple has informed Goldman Sachs that it plans to end its credit card and savings account partnership within the next 12 to 15 months. This news comes from a source familiar with the matter who spoke with CNBC’s Leslie Picker. This planned move would terminate one of the most high-profile partnerships between a bank and a tech company.
The end of this partnership will require Apple to seek out a new financial partner for its popular Apple Card and high-yield savings accounts, both of which are currently managed by Goldman Sachs. Goldman Sachs CEO David Solomon was present at the launch event for the Apple Card in 2019. However, the partnership has encountered difficulties in recent years, with Goldman Sachs retreating from consumer banking pursuits and facing regulatory scrutiny regarding refunds, billing errors, and allegations of gender discrimination in credit limit determinations.
Earlier this year, Goldman Sachs announced that it would consider strategic alternatives for its consumer banking business. This decision could be a result of the high costs associated with this line of business. For Apple, the credit card and savings accounts serve as tools to enhance the iPhone user experience and to contribute to the growth of their services business. The company has not yet revealed whether it has secured a new partner or if it will make significant changes to its financial products if the partnership with Goldman Sachs is dissolved.
The Wall Street Journal previously reported the proposal by Apple, although a representative from Goldman Sachs declined to comment on the matter. An Apple representative emphasized the company’s commitment to providing top-tier tools and services to its customers. CNBC’s Leslie Picker and Steve Kovach contributed to the reporting of this story.
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