Goldman Sachs insiders have expressed reservations about their consumer lending endeavors with Apple, as highlighted in a recent Wall Street Journal article.
A notable statement from an anonymous Goldman partner about their collaboration with Apple on the savings account in April was, "We should have never done this f—ing thing."
The collaboration between Apple and Goldman has resulted in various consumer services. These include an Apple credit card, the Apple savings account, and a deferred payment plan that allows customers to make staggered payments for high-priced items.
Despite Apple and Goldman publicly celebrating the success of these services — with Apple announcing deposits exceeding $10 billion in the savings accounts — the Wall Street Journal's recent insights imply Goldman might be reconsidering its position in consumer lending.
Several Goldman insiders have echoed the sentiment that the collaboration might not have been the best decision. Previous speculations about potential discord have arisen. The Journal, in July, suggested Goldman was contemplating transferring its Apple partnership, potentially to American Express. Still, neither firm has made public statements about such changes.
Subsequently, in the same month, Goldman CEO David Solomon reassured stakeholders about their credit card initiatives, which also feature a partnership with General Motors initiated in 2020.
Solomon asserted, "Our credit card alliances are conceived for the long haul. There's potential for optimization." He added that efforts were underway to enhance these partnerships and expressed their commitment to working closely with both Apple and GM to achieve this.
Apple refrained from commenting on this matter, and Goldman opted not to respond to the Wall Street Journal's article.
However, it's noteworthy that Goldman's consumer banking segment witnessed significant losses during the pandemic, as reported by Insider's Dakin Campbell in August 2022. By October 2022, Solomon confirmed the extension of Goldman's agreement with Apple until 2029.
Solomon has been under increasing scrutiny.
Goldman's recent earnings report indicated a decline, marking their most dismal performance in recent times. Solomon viewed these challenging results as part of Goldman's ongoing strategic transformation. The third-quarter earnings of Goldman are slated for release on Tuesday.
