Apple has opened talks with Goldman Sachs to end their their credit-card and savings account partnership within the next 12 to 15 months.
The shocking move would end one of the world’s highest profile alliances between a bank and a technology firm, according to CNBC.
Both multi-nationals have held a high-profile partnership overseeing the Apple Card and associated high-yield savings accounts.
The news would almost certainly raise questions about the future of Apple’s financial offerings – as the firm relies on Goldman Sachs for banking infrastructure – and therefore would need a new partner.
Apple’s entry into the financial services sector with the Apple Card marked a significant move towards enhancing its services business and providing value-added features to its users.
However, regulatory scrutiny and challenges faced by Goldman Sachs in its consumer banking aspirations have strained the partnership. Rising costs have seen the firm back away from its previous consumer banking targets under CEO David Solomon.
The separation could potentially prompt Apple to seek new financial partners or rethink its strategy regarding financial products. While Apple aims to provide an outstanding experience for its customers, the future of the Apple Card and associated services remains uncertain in the absence of the Goldman Sachs partnership.
An Apple representative told CNBC, “Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. 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.”
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