Apple has submitted a proposal to Goldman Sachs, signaling its intention to terminate their credit card and savings account partnership within the next 12 to 15 months, according to a source familiar with the matter. If the proposal moves forward, it would mark the conclusion of one of the notable collaborations between a technology company and a financial institution.
The partnership involves Apple Card, one of Apple’s popular financial products, and high-yield savings accounts under the Apple brand. While Apple Card and savings accounts are accessible through the iPhone’s wallet app, the backend banking operations are managed by Goldman Sachs. The potential termination of the partnership raises questions about Apple’s plans for these financial products and whether it will seek a new partner or explore alternative strategies.
The Apple Card was launched in 2019, with Goldman Sachs CEO David Solomon attending the high-profile Apple launch event. However, the partnership has faced challenges, with Goldman Sachs shifting away from its consumer banking ambitions and facing regulatory scrutiny regarding refund procedures, billing errors, and alleged gender discrimination in credit limit determinations.
Goldman Sachs announced earlier this year that it would “consider strategic alternatives” for its consumer banking business. For Apple, financial products like the Apple Card contribute to the value and additional features offered on iPhones, supporting the growth of its services business through associated fees.
While details about Apple’s potential new partner or changes to its financial products remain unclear, an Apple representative emphasized the company’s commitment to delivering innovative tools and services, citing the positive reception of the Apple Card by consumers.
The proposal to end the partnership was initially reported by The Wall Street Journal, and both Apple and Goldman Sachs declined to comment on the matter. The development underscores the evolving landscape of financial services within the technology sector and the dynamics of partnerships between tech companies and traditional financial institutions.