Goldman Sachs is thinking about breaking up with Apple after losing billions on its consumer banking push, reports say

The Goldman Sachs logo, displayed on a phone screen above, and Apple's logo on the side of a building below.

Goldman may end its partnership with Apple.Getty Images

  • Goldman Sachs may be looking to end its partnership with Apple, The Wall Street Journal reported.

  • It started offering an Apple-branded credit card in 2019 and more products since then.

  • Goldman has abandoned other elements of its consumer banking push in recent months.

It seems Goldman Sachs might prefer Wall Street to main street after all.

The investment banking giant has made forays into consumer lending in recent years, but some of those have been abandoned. Now Goldman is considering breaking up with Apple too, according to a report by The Wall Street Journal.

In 2019 the bank started offering an Apple-branded credit card, and launched a savings account and “buy now pay later” service with the tech giant earlier this year.

However, Goldman’s broader consumer efforts have struggled, leading to criticism of CEO David Solomon over his support of  attempts to diversify away from its traditional activities.

Solomon said last October that the partnership with Apple had been extended until 2029, but those plans may now be shifting.

On Friday the Journal cited unnamed sources who said Goldman has discussed a deal that would move its Apple offerings to American Express.

CNBC later confirmed the discussions, but both CNBC and the Journal said no deal was imminent. Any change would also require Apple’s approval.

In January Goldman said it’d lost about $3 billion from its consumer banking activities in three years.

The following month Solomon said the bank was considering “strategic alternatives,” but had appeared committed to the Apple partnership.

Goldman may also be looking to get out of offering a General Motors-branded credit card, the Journal reported.

Goldman Sachs, Apple, and American Express did not immediately respond to requests for comment from Insider, made outside normal working hours.

Read the original article on Business Insider

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