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Apple and Goldman Sachs Reportedly Parting Ways: A Shifting Landscape in Consumer Banking

AP Photo/Tony Avelar

Apple and Goldman Sachs may be parting ways after a four-year collaboration on the Apple credit card, as reported by The Wall Street Journal. Although the partnership was recently extended until 2029, Apple is suggesting the termination of the contract within the next 12 to 15 months.

Despite jointly launching a high-yield savings account in April, the potential breakup may not greatly impact Goldman Sachs. Recent reports indicated the bank’s intention to exit the consumer lending sector, with earlier communication to Apple expressing its desire to terminate the agreement. Goldman Sachs had even approached American Express to take over its operational responsibilities.

Additionally, Goldman Sachs has taken steps to divest from the consumer lending business, including selling home improvement loan company GreenSky and planning to conclude its credit card partnership with General Motors. This strategic shift aims to refocus on core operations and return to serving corporate and high-net-worth clients. The bank has informed employees that any layoffs will include one year’s salary.

In response to CNBC, an Apple spokesperson stated, ‘Apple and Goldman Sachs are dedicated to delivering an exceptional experience for our customers, aiding them in managing healthier financial lives. The acclaimed Apple Card has garnered positive feedback from consumers, and we remain committed to innovation, continually providing the best tools and services.’

The partnership between Apple and Goldman Sachs has not been without challenges, both for the companies and their customers. Goldman employees expressed frustration with elements like payment schedules and a push for widespread application approvals. Customers, on the other hand, cited issues with the bank’s customer service, including delayed transfers and reportedly unpleasant interactions with representatives, as reported by The Information.

The fate of Apple’s credit card and high-yield savings account hangs in uncertainty. These offerings are part of Apple’s expanding services sector, showing increased revenue compared to declines in general sales. Synchrony Financial, already collaborating with Amazon and PayPal, is exploring the potential takeover of Goldman’s role, having initially competed against Goldman for the program.

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