Goldman Sachs is reportedly considering ending its partnership with Apple, as the investment banking giant looks to refocus on its traditional activities. The bank had entered into a partnership with Apple in 2019, offering an Apple-branded credit card and launching other products such as a savings account and a "buy now pay later" service. However, Goldman's broader consumer banking efforts have faced challenges, leading to criticism of CEO David Solomon's diversification strategy. Last October, Solomon announced that the partnership with Apple had been extended until 2029, but recent reports suggest that plans may be shifting.
Unnamed sources cited by The Wall Street Journal revealed that Goldman has discussed a potential deal to transfer its Apple offerings to American Express. CNBC later confirmed the discussions, but both CNBC and the Journal stated that no deal was imminent and any change would require Apple's approval.
Goldman's consumer banking activities have not been profitable, with the bank reporting a loss of approximately $3 billion in this area over the past three years. In January, Solomon mentioned that the bank was considering "strategic alternatives," but seemed committed to the Apple partnership at the time.
In addition to its potential exit from the Apple partnership, Goldman Sachs is also reportedly looking to discontinue offering a credit card branded by General Motors.
As of now, there has been no official comment from Goldman Sachs, Apple, or American Express regarding these reports.
Overall, it appears that Goldman Sachs is reconsidering its consumer banking push and may be looking to refocus on its core activities. The potential breakup with Apple and the discussions with American Express indicate a shift in strategy for the investment banking giant. However, it is important to note that no final decisions have been made, and any changes would require the approval of Apple.