CUPERTINO, Calif.–What was once launched with great fanfare is headed the way of a deleted app. Apple has sent a proposal to Goldman Sachs in which it is seeking to exit its contract with the bank for financial services provided to consumers. It is seeking to end the deal, which includes the entirety of the consumer partnership, including the credit card in the next 12 to 15 months, according to the Wall Street Journal.
The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12 to 15 months, according to people briefed on the matter. The exit would cover their entire consumer partnership, including the credit card the companies launched in 2019 and the high-yield savings account introduced earlier in 2023. As CUToday.info reported at the time, respectively, both of those offerings attracted great concerns among credit unions and other financial institutions.
According to the Journal report, it is not known whether Apple has already lined up a new issuer for its card. It was just a year ago that the two companies announced their partnership was being extended through 2029.
However, Goldman Sachs has been looking to retreat from the consumer banking business after losing billions of dollars trying to build out a full-service consumer operation, the Journal reported.
Looking for New Banks
“By early this year, Goldman had told Apple that it would be looking to offload the partnership,” according to the report. “Typically the merchant—in this case Apple—plays a controlling role in such partnerships. Goldman has discussed with American Express the possibility of handing over the program to the card giant. Amex expressed concern about several aspects of the program, including its loss rates, and it isn’t clear if those discussions have continued.”
In addition, the Journal said Goldman earlier this month told employees who work on its credit-card partnerships that they would be eligible for pay equal to one year of their compensation if their jobs are eliminated.
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