Apple has made a proposal to Goldman Sachs to end its credit card and savings account partnership within the next 12 to 15 months, according to a person familiar with the matter.
The move, if it goes ahead, would effectively end one of the most high-profile partnerships between a bank and a technology company.
It would also mean Apple would have to find a new financial partner for its popular credit card, the Apple Card, and its high-yield Apple-branded savings accounts. While Apple offers both its credit 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 on hand for a glitzy Apple launch event at its California campus.
But the partnership has been rocky in recent years as Goldman Sachs, under CEO David Solomon, has retreated from its previous consumer banking ambitions as costs have piled up. Goldman has also faced regulatory scrutiny over its handling of refunds and billing errors, as well as allegations of gender discrimination in setting credit limits.
Earlier this year, Goldman Sachs said it would “explore strategic alternatives” for its consumer banking business.
For Apple, the credit card and savings accounts are a way of adding value and extra features to its iPhone, as well as supporting its fast-growing services business with fees. It’s not clear whether Apple has found a new partner or would consider major changes to its financial products if it were to end the agreement with Goldman Sachs.
“Apple and Goldman Sachs are focused on delivering an incredible experience for our customers to help them lead healthier financial lives,” said an Apple representative. “The award-winning Apple Card has been very well received by consumers, and we will continue to innovate and deliver the best tools and services for them.”
Apple’s proposal was previously reported by the Wall Street Journal. A representative for Goldman Sachs declined to comment.
