Apple Seeks Exit from Goldman Sachs Partnership, Explores Future Financial Changes

Reportedly, Apple is exploring options to terminate its credit card and savings account collaboration with Goldman Sachs within approximately a year, reports PaySpace Magazine. A recent Wall Street Journal report indicates that Apple has submitted a proposal to conclude the current partnership within the next 12 to 15 months.

Should this prominent collaboration come to an end, Apple would need to seek another financial partner to sustain its popular credit card service, Apple Card, along with the associated high-yield savings accounts branded under Apple.

The partnership between Apple and Goldman Sachs for the savings accounts linked to Apple Card commenced in late 2022. This addition enhanced the value of Apple's credit card product, allowing customers to automatically deposit their Daily Cash cashback rewards and additional funds from a linked bank account or Apple Cash balance at competitive interest rates. Both financial products bearing the Apple brand experienced considerable success, with deposits in Apple Card's Savings Account surpassing $10 billion as of August 2023.

However, Goldman Sachs has recently scaled back its consumer banking ambitions to control expenses. Reports suggest the possibility of the lender selling its entire personal finance management business. Additionally, the bank has faced regulatory scrutiny over alleged gender-biased credit decisions and mishandling of refunds and billing errors.

In July, information surfaced about Goldman Sachs contemplating an action plan to conclude its partnership program with Apple. At that time, a potential alternative involved transferring the banking aspect of Apple Card and savings account services to American Express. The current status of Apple's agreement, whether it involves accepting this alternative, finding a new partner, or considering broader changes to its financial products portfolio, remains unclear.