Apple has reportedly presented Goldman Sachs with a proposal to terminate their credit-card and savings account collaboration within the next 12 to 15 months, according to a source familiar with the matter.
The potential separation would bring to a close one of the most prominent partnerships between a technology company and a bank, requiring Apple to seek a new financial ally for its widely used Apple Card and associated high-yield savings accounts. Although Apple offers these services through its wallet app, Goldman Sachs manages the banking infrastructure.
Initially launched in 2019 with Goldman Sachs CEO David Solomon present at a lavish Apple event, the collaboration has encountered challenges in recent years. Goldman Sachs, under Solomon’s leadership, has scaled back its consumer banking endeavors due to escalating costs. The bank has also faced regulatory scrutiny over its handling of refunds and billing errors, along with allegations of gender discrimination in credit limit determinations.
Goldman Sachs had earlier expressed openness to exploring “strategic alternatives” for its consumer banking business earlier this year. Apple’s credit card and savings accounts serve as tools to enhance the iPhone experience and contribute to the growth of its services business through associated fees.
It remains uncertain whether Apple has identified a new partner or is contemplating broader changes to its financial products in the event of a separation from Goldman Sachs.
Responding to inquiries, an Apple representative emphasized the companies’ commitment to delivering an exceptional customer experience, stating, “Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. 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.” The proposal from Apple was first reported by the Wall Street Journal, and a representative from Goldman Sachs declined to comment.
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