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

July 3, 2023 | FinTech, News

Goldman has lost about $3 billion on its consumer banking foray since 2020.

Goldman Sachs Group (NYSE: GS) is reportedly in discussions with American Express (NYSE: AXP) to end its partnership with Apple (NASDAQ: AAPL). Goldman had previously announced plans to scale back its consumer business but appeared committed to its relationship with Apple.

That was evident from its recent moves to extend its partnership with the iPhone maker till the end of the decade and launching a bank account with it. (WSJ)

However, Goldman is now seeking to offload its Apple credit card and other ventures to Amex. Talks are also underway to transfer its card partnership with General Motors (NYSE: GM). While a deal with Amex is not certain and could take time, Apple is aware of the discussions.

The venture into consumer finance and banking has proved costly for Goldman, however. In January, it disclosed that it had lost about $3 billion on the foray since 2020, leading to a lot of internal flak for CEO David Solomon.

Exiting the Apple partnership would effectively end Goldman’s consumer-lending business and its aspirations to become a full-service bank. The bank has already stopped issuing personal loans and is trying to sell GreenSky, a home-improvement lender it acquired recently.

However, Goldman intends to continue accepting consumer deposits through its Marcus savings account.

Related Story:  Private Equity In The Fray To Acquire Goldman’s Greensky

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