Apple Inc. is eyeing an end to its ambitious financial services collaboration with Goldman Sachs.
The company reportedly submitted a proposal to terminate the credit card and savings account partnership within a year to 15 months, potentially ending one of the most prominent alliances between a technology firm and a banking institution, per CNBC.
When the Apple Card was launched in 2019 at Apple’s California headquarters, Goldman Sachs’ CEO David Solomon attended the event as a key partner. Designed to mesh seamlessly with the iPhone experience, the Apple Card and associated high-yield savings accounts operate under Apple’s umbrella, with Goldman Sachs providing the essential banking framework.
But the collaboration’s been turbulent in recent years. Goldman Sachs has faced regulatory inquiry over its credit operations, including issues surrounding billing errors and gender discrimination in credit evaluations.
Conflict within the firm has also made headlines. Solomon gave up his somewhat controversial party DJ side hustle due to “outside attention to it,” a Goldman spokesperson told CNN, amid accusations the board disapproved of the off-hours gig, the outlet reported earlier this year.
Additionally, the banking giant has been reassessing its consumer banking ventures, conceding earlier this year that it may explore strategic alternatives for its consumer division, per CNBC.
For Apple, this financial venture forms a critical piece in a jigsaw of services that not only enhance the iPhone’s utility but also contribute to the technology giant’s burgeoning services division through user fees. The company hasn’t disclosed publicly whether it found a new financial partner.
Between its launch in April of this year and August, Apple Card’s high-yield savings account saw more than $10 billion in deposits from users, Apple wrote in a statement to the press. “With no fees, no minimum deposits, and no minimum balance requirements, Savings provides an easy way for users to save money every day,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet.
Does the Apple-Goldman partnership’s end mean the Apple Card and savings account are in jeopardy? According to Motley Fool’s The Ascent, probably not: Although there might be some changes if a new issuer takes over the card, Apple will likely have sway to ensure valued features remain in place.
“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 the outlet. “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.”
