David Solomon, Chairman and CEO, Goldman Sachs, participates in a panel discussion during the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California.
Michael Kovac | Getty Images Entertainment | Getty Images
an apple gave Goldman Sachs proposal to end its credit card and savings account partnership within the next 12 to 15 months, a person familiar with the matter told CNBC’s Leslie Picker.
The move, if it were to happen, would effectively end one of the most high-profile partnerships between a bank and a technology company.
It would also mean that Apple would have to find a new financial partner for its popular credit card, Apple Card, and its high-yield savings accounts under the Apple brand. While Apple offers its credit card and savings account through the wallet app on iPhones, the banking backend is handled by Goldman Sachs.
When Apple first launched the Apple Card in 2019, Goldman Sachs CEO David Solomon attended a glittering Apple launch event at its California campus.
But the partnership has been rocky in recent years as Goldman Sachs, under CEO David Solomon, backed away from its previous consumer banking ambitions as costs piled up. Goldman has also faced scrutiny from regulators over how it handles chargebacks and billing errors, and over alleged gender discrimination when determining credit limits.
Earlier this year, Goldman Sachs said it would “consider strategic alternatives” for its consumer banking business.
For Apple, the credit card and savings accounts are a way to add value and extra features to its iPhone, as well as bolster its fast-growing service business through fees. It is not clear whether Apple has found a new partner or would consider bigger changes to its financial products if it were to leave the deal with Goldman Sachs.
Apple’s proposal was previously reported by the Wall Street Journal. A Goldman Sachs representative declined to comment.
CNBC’s Leslie Picker and Steve Kovach contributed to this story.