Goldman Sachs - Apple partnership may be coming to an end

Goldman Sachs is seeking to end its partnership with Apple Inc. Via Apple credit card. The Wall Street giant is said to be in talks with American Express (Amex) over the offloading of this product as well as other savings account products. This also includes the transfer of its card partnership with General Motors.

Goldman Sachs - Apple breakup

Goldman Sachs’ aforementioned deal with Amex is yet to be confirmed. Besides, even with its confirmation, it will take quite some time to transfer the partnership . This would also require Apple to agree to the arrangement.

In October 2022, the investment bank extended its partnership with Apple Inc through 2029. This involved supporting the tech company’s BNPL offering as well as introducing a bank account via this partnership.

Notably, the move by Goldman Sachs to end its partnership with Apple would mark the end of its consumer-lending venture. Indeed, the bank has already stopped the issuance of personal loans. It is also looking to sell its home-improvement lender, GreenSky, which it acquired in 2022. This is in addition to the transfer of its card partnership with General Motors to Amex or another company.

At the start of 2023, Goldman Sachs indicated that amid its Main Street push, its consumer-lending business lost about $3 billion since 2020. If the investment bank is to sell GreenSky and offload its credit card business, its consumer segment will be reduced to the initial product - Marcus savings account. Even so, it is set to continue receiving consumer deposits.

Overall, it appears keen to shift its attention from full-service consumer banking. This decision has been evident since late last year after an internal review. For instance, it ended talks with T-Mobile for the launch of a credit card. Besides, it lay low on placing its bid on new programs. Prior to late 2022, the bank had been in bidding wars for credit card deals with the likes of Citigroup and JPMorgan.