FinTech: Apple Looking To End Its Credit Card And Savings Account Tie-Up With Goldman Sachs

November 29, 2023 | FinTech, News

“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.” – Company rep to CNBC

Apple (NASDAQ: AAPL) has presented a proposal to terminate its credit-card and savings account partnership with Goldman Sachs (NYSE: GS) within the next 12 to 15 months, marking a potential end to one of the most highly-anticipated collaborations between a tech company and a bank.

The termination would necessitate Apple to seek a new financial partner for its widely-used Apple Card and its high-yield savings accounts. Despite the iPhone-maker managing both services through its wallet app, the underlying banking operations are currently handled by Goldman Sachs. (CNBC)

The partnership, initiated with the launch of the Apple Card in 2019, has faced challenges, including Goldman Sachs retreating from consumer banking ambitions due to escalating costs. The bank also encountered regulatory scrutiny for issues like refund handling and alleged gender discrimination in credit limit determinations. Earlier this year, Goldman Sachs indicated its readiness to explore “strategic alternatives” for its consumer banking business.

For Apple, these financial products enhance the value of its iPhone and contribute to the growth of its services business through associated fees. The company has not disclosed whether a new partner has been identified or if substantial changes to its financial offerings are being considered.

According to a spokesperson from Apple speaking to CNBC, Apple and Goldman Sachs are both dedicated to delivering an exceptional experience for their customers with the aim of assisting them in leading more financially sound lives.

The proposal’s details were initially reported by the Wall Street Journal, with a Goldman Sachs representative declining to comment on the matter.

Related Story:  Goldman Sachs May Sell Its Apple Card And Other Consumer-Facing Businesses To Amex

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