Goldman Sachs Executives Sour on Apple Savings Partnership

Goldman Sachs Executives Sour on Apple Savings Partnership

This article originally appeared on Business Insider.

A new report from The Wall Street Journal sheds further light on how Goldman insiders feel about the bank’s consumer-lending efforts with Apple.

One quote, in particular, stands out.

“We should have never done this f—ing thing,” an unnamed Goldman partner, speaking about the bank’s April savings accounts launch with Apple, reportedly told others at the bank.

Together, Apple’s partnership with Goldman has yielded multiple consumer services, including an Apple credit card, the aforementioned Apple savings account, and a buy-now,pay-later service that lets customers spread out payments on larger purchases.

But while Apple and Goldman have publicly touted the success of the various services — Apple announced earlier this year that users had deposited more than $10 billion into savings accounts — the Journal’s latest report suggests Goldman may be looking for the exit as it seeks to minimize its consumer-lending footprint.

Other Goldman insiders apparently agree with the unnamed partner’s feeling that the partnership was a mistake, the Journal reported.

This also isn’t the first rumbling of unrest in the partnership. The Journal reported in July that Goldman was considering offloading its Apple partnership, possibly to American Express. But the companies haven’t spoken publicly of any changes. That same month, Goldman CEO David Solomon told investors and analysts during the bank’s second-quarter earnings call that the bank was making progress on its credit card partnerships, which also include a credit card with General Motors, launched in 2020.

“We’ve also said very clearly that our credit card partnerships are long-term partnerships…They definitely can operate better,” Solomon said on the call. “We’ve been working hard to improve the operation of them … we’re making good progress on that. And we’re working with Apple and also with GM to do that.”

Apple did not respond to Insider’s request for comment ahead of publication. A Goldman spokesperson declined to comment on the Journal’s report.

But Goldman faced mounting losses in its consumer banking business during the pandemic, Insider’s Dakin Campbell reported in August 2022. In October 2022, Solomon said that Goldman’s deal with Apple had been extended until 2029.

Meanwhile, pressure on Solomon has been growing.

Last quarter, Goldman reported its worst earnings in years. According to Solomon, the gloomy numbers were part of the bank’s “journey” to chart a new path with its evolving strategy.

Goldman reports its third-quarter earnings Tuesday.

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