Goldman Sachs is reportedly in talks to exit its credit card partnership with Apple. Here’s a summary of the key points:
- Goldman’s Departure
Goldman Sachs and Apple reportedly ended their partnership last year, which included credit cards and savings accounts. Goldman’s foray into consumer banking, which included the Apple Card, led to substantial losses, prompting the bank to refocus on its core investment banking and trading operations. - Goldman’s Struggles
The Apple Card, launched in 2019, targeted customers with lower credit scores to boost revenue, but Goldman had to set aside large provisions for bad loans. This contributed to significant financial losses in its consumer division. - Future of Apple’s Credit Card Program
As Goldman pulls out, Apple will need to find a new partner to manage its credit card program. The future direction of the card and its offerings remains uncertain until a new partnership is established.