By John Ikani
Apple is reportedly parting ways with Goldman Sachs, signalling the tech giant’s shift away from its credit card collaboration with the investment bank.
Sources cited by the Wall Street Journal said Apple has formally proposed a gradual exit from the partnership, outlining a departure timeline of 12 to 15 months.
The dissolution encompasses the entirety of their consumer collaboration, encompassing the credit card jointly launched in 2019 and a savings account introduced more recently.
The Wall Street Journal, quoting insiders, disclosed these developments, shedding light on Apple’s strategic move amid Goldman Sachs’ decision to scale back its involvement in consumer lending.
Notably, the investment bank has found consumer lending to be a more financially burdensome venture than initially anticipated.
It remains uncertain whether Apple has secured an alternative issuer for the credit card, a detail yet to be clarified in the report.
Goldman Sachs had previously communicated its intention to terminate the partnership to Apple, paving the way for discussions on potential successors.
American Express and Synchrony Financial have emerged as contenders for assuming control of the credit card program, with the Wall Street bank exploring viable handover options.
In a broader context, Goldman Sachs has been in talks to conclude another credit card collaboration with General Motors, demonstrating a broader strategic recalibration.
In addition, the bank had recently reached an agreement to divest its consumer banking entity, GreenSky.
Despite attempts to glean further insights, both Apple and Goldman Sachs chose not to respond to queries from AFP regarding the reported development.