David Solomon, Chairman and CEO, Goldman Sachs, participates in a panel discussion in the course of the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California.
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Apple has given Goldman Sachs a proposal to finish its credit-card and savings account partnership inside the following 12 to fifteen months, an individual accustomed to the matter told CNBC’s Leslie Picker.
The move, if it were to occur, would effectively end certainly one of the very best profile partnerships between a bank and a tech company.
It might also mean that Apple would wish to search out a recent financial partner for its popular bank card, Apple Card, and its high-yield savings accounts under the Apple brand. While Apple offers each its bank card and savings account through the wallet app on iPhones, the banking backend is handled by Goldman Sachs.
When Apple first launched the Apple Card in 2019, Goldman Sachs CEO David Solomon was in attendance at a glitzy Apple launch event at its California campus.
However the partnership has been rocky in recent times as Goldman Sachs, under CEO David Solomon, has retreated from its previous consumer banking ambitions as costs stacked up. Goldman has also faced scrutiny from regulators into the way it handles refunds and billing errors, and over alleged gender discrimination when determining credit limits.
Earlier this 12 months, Goldman Sachs said that it might “consider strategic alternatives” for its consumer banking business.
For Apple, the bank card and savings accounts are a option to add value and extra features to its iPhone, in addition to bolster its quickly growing services business with fees. It isn’t clear whether Apple has found a recent partner or would consider greater changes to its financial products if it were to exit the agreement with Goldman Sachs.
“Apple and Goldman Sachs are focused on providing an incredible experience for our customers to assist them lead healthier financial lives,” an Apple representative told CNBC. “The award-winning Apple Card has seen an amazing reception from consumers, and we’ll proceed to innovate and deliver the most effective tools and services for them.”
The proposal from Apple was previously reported by the Wall Street Journal. A Goldman Sachs representative declined to comment.
CNBC’s Leslie Picker and Steve Kovach contributed to this story.
