The Wall Street Journal has reported additional news about Goldman Sachs, the bank that intends to sever its partnership with Apple in the financial services sector. This includes both the Apple Card credit card account and the Apple Pay Later installment service. Overall, the bank wants to withdraw entirely from the personal lending business due to significant financial losses. Consequently, the partnership with Apple had to be terminated.
However, despite Goldman Sachs’ desire to end this business segment, they have been unable to do so. The company has negotiated with AMEX for some time, but there has been no progress. Now, there is an idea to transfer the business to Apple, with the responsibility for new customers falling on the tech giant. As for existing customers, the bank will continue to support them for the time being.
The report also mentions that on the day Apple launched its high-yield deposit account service for Apple Card customers using Goldman Sachs’ banking services, some of the bank executives disagreed and voiced their disapproval. They indicated that such actions should not be taken. Another issue that Goldman Sachs has encountered is that Apple Card billing statements are all due at the beginning of each month. This has led to a large number of customers having to make payments at the counter simultaneously. It raises questions about the agreement between the bank and Apple, as to why it was structured this way.
TLDR: Goldman Sachs seeks to end its partnership with Apple, withdrawing from the personal lending business due to financial losses. Negotiations with AMEX have not progressed, leading to the idea of transferring the business to Apple. Existing customers will remain the bank’s responsibility. Concerns have been raised about the simultaneous billing statements for Apple Card users.