Report: Apple to end partnership with bank that backs Apple Card, savings accounts::Goldman Sachs has lost billions of dollars on its consumer-focused businesses.

  • AutoTL;DRB
    107 months ago

    This is the best summary I could come up with:

    But even if those products have proven reasonably popular with consumers, they haven’t been working out for the bank that Apple has partnered with to supply those services.

    Goldman Sachs’ consumer services have been losing the company billions of dollars, according to reporting from Bloomberg, CNBC, and The New York Times, among others.

    The financial losses seem like the biggest point of contention between the companies, but the WSJ also reports that Apple has frustrated Goldman Sachs execs by demanding that most people who apply for an Apple Card get approved, and that all Apple Card customers receive their bills on the same day (banks typically try to spread these bills out to avoid a deluge of customer service calls).

    Executives also partly blame Apple for regulatory issues that Goldman has had with the Consumer Financial Protection Bureau and the Federal Reserve.

    “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."

    Providing services like the Apple Card has become more important to Apple’s bottom line in recent years, as revenue growth from the iPhone, iPad, Mac, and other hardware businesses has slowed or flatlined.

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