According to the person familiar with the subject, Apple has given Goldman Sachs an offer to cease to end its credit-card and savings account partnership within the next 12 to 15 months.
If the transfer goes through, it will effectively end one of the most high-profile collaborations between a bank and a digital business.
It would also imply that Apple would need to seek a new financial partner for its popular credit card, Apple Card, as well as its high-yield savings accounts under the Apple name. While Apple provides both its credit card and savings account through the wallet app for iPhones, Goldman Sachs handles the financial backend.
When Apple originally introduced the Apple Card in 2019, Goldman Sachs CEO David Solomon was present at a glamorous Apple launch event at the company’s California headquarters.
However, the cooperation has been strained in recent years as Goldman Sachs, led by CEO David Solomon, has withdrawn from its former consumer banking objectives as costs have piled up. Regulators have also questioned Goldman about how it handles refunds and billing problems, as well as allegations of gender discrimination in calculating credit limits.
Goldman Sachs announced earlier this year that it would “consider strategic alternatives” for its consumer banking unit.
Credit cards and savings accounts are a way for Apple to add value and functionality to the iPhone while also bolstering its rapidly developing services company with fees. It is unclear whether Apple has sought a new partner or would consider major changes to its financial products if the arrangement with Goldman Sachs were to be terminated.
“Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives,” a spokesperson for the company told CNBC. “The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them.”
The Wall Street Journal first reported Apple’s proposal. A spokesman from Goldman Sachs declined to comment.