Multiple news outlets reported that Goldman Sachs is in discussion to dump its Apple credit card. Goldman is also looking to offload high-yield savings account products to American Express. The reported talks came following Goldman’s massive withdrawal from its substantially messed up banking initiatives.
Meanwhile, CEO David Solomon has already taken a remarkable deal of heat for banking initiatives. A news outlet reported last week that the Wall Street giant is looking to take a bigger cutback. The move was reportedly on its 2021 purchase of GreenSky (Fintech lender). The WSJ first reported the Goldman negotiations with American Express.
The Wall Street Journal said there wasn’t any confirmation of a deal or an agreement. But it would spot a sharp swing for both corporate giants. The WSJ reported in October 2022 that Apple and Goldman revived their cooperation through to 2029. However, Goldman Chief Financial Officer Denis Coleman announced a heightening of the partnership in April.
Statements of Goldman’s CFO and Apple’s CEO
CFO Denis Coleman also said that the firm has announced the launch of a savings account this week. The launch was related to the savings account for the users of Apple Card. He added that the firm is dedicated to enhancing its partnership with Apple via this additional offering. Goldman also presented another source of deposit funding for the company.
The CEO of Apple pointed out key points during Apple’s last conference call. He said the tech giant also launched Apple Pay Later based on the privacy and financial health of users. Apple Pay Later enables users to divide purchases into multiple payments without any fees or markup. The company presented Apple Card Savings Accounts (ACSA) last month.
The ACSA was designed to provide its users with more value out of their daily cash Apple Card Benefit. But Goldman Sachs seeks to withdraw Apple Card and its related saving products. It is unconfirmed whether it badly impacts Apple for not providing the ground as Goldman hoped for at this point. Meanwhile, the reason behind this ostensible move is unknown until the announcement of a final deal.
Goldman Sachs partnered with Apple Card for 4 Years
Techcrunch.com also reported that Goldman Sachs was supposedly looking for the exits. Goldman remained partners with Apple on the launch of the Apple Card for 4 years. The WSJ reported that Goldman was seeking a way out of its massive deal with Apple.
However, the firm recently extended its partnership and added savings accounts for Apple Card holders. The news outlet said the investment banking firm was seemingly in discussions to withdraw the partnership with American Express. The WSJ also said that it is still unconfirmed and unclear if Apple will support the handover or transfer.
It is noteworthy that it will not surprise people if such a move comes to be implemented. CEO of Goldman Sachs earlier said that the firm was looking for strategic possibilities for the firm’s consumer arm. The consumer-facing business of Goldman Sachs includes a credit card partnership with Green Sky and General Motors.
Abandoning Savings Account Products to American Express
Last week, cnbc.com reported that the investment firm is in a dialog to drop its Apple credit card. Goldman was also considering abandoning the high-profile savings account products to American Express. But Apple, American Express, and Goldman Sachs rejected to comment on the story. The reported discussions came amid a larger withdrawal from Goldman.
Meanwhile, the investment firm massively failed consumer banking ambitions. A news outlet 9to5mac.com reported that Apple earlier developed a solid partnership with Goldman Sachs via its Apple Card. The WSJ reported that Goldman was in a debate with American Express to transfer its partnership with Apple. This supposed move came after Goldman made an announcement earlier this year.
The firm said in January that around $1 billion has vanished with the Apple Card deal. Our reliable sources have confirmed that the investment firm is in discussions to unload businesses and credit-card partnerships with Amex. The reports said that Goldman has already cut down its proceedings to force the lock in the consumer finance industry.
Goldman Sachs lost $1 Billion on Apple Card Partnership
However, the move isn’t more surprising as it doesn’t cooperate with the recent comments from the investment firm. CEO of Goldman said last year that the firm has secured a deal with Apple for expanding the partnership. The firm announced in January for losing more than $1 billion on its Apple Card partnership.
Goldman Sachs also said in February that the firm was still committed to the partnership with Apple regardless of losses. CEO said there were a lot of opportunities and the partnership is very strong. The investment firm recently enhanced its cooperation with Apple after the Apple Card Savings Account launch.
The firm is also the issuer of the Maser Card payment certificate used to finalize the purchases for Apple Pay Later. It is important that Apple Card doesn’t charge users extra fees instead of markup. But other card companies charge late fees and foreign transaction fees. Goldman Sachs is more liberal to approve people for Apple Card.