Apple to end consumer banking contract with Goldman Sachs

Apple has sent a proposal to Goldman Sachs to end their banking partnership within the next 12-15 months.

Apple and Goldman Sachs strategize to end their consumer banking contract that saw the roll-out of a credit card in 2019 and a savings account earlier this year.

Sources familiar with the matter told multiple media outlets that Apple has initiated a process with Goldman Sachs, which has been sunsetting its consumer banking hopes, that will see an end to the contract within the next 12-15 months.

This comes just a few months after Apple’s savings account offering reached a milestone of $10bn in deposits as more users signed up to the high-yield scheme offered by Goldman Sachs.

First introduced to US customers in April, Savings enables Apple Card users to grow their Daily Cash rewards with a savings account from Goldman Sachs, which offers a high annual percentage yield of 4.15pc – much higher than the average US savings account.

Jennifer Bailey, vice-president of Apple Pay and Apple Wallet, said in August that the company seeks to “reinvent” financial product categories every time it launches a new one, keeping a users’ financial health in mind.

“That was our goal with the launch of Apple Card four years ago, and it remained our guiding principle with the launch of Savings,” Bailey said.

Now, with Goldman Sachs soon to be out of the picture, it remains to be seen who will take over the banking side of things for the Apple credit card and savings account.

According to the Wall Street Journal, which first reported on this story, American articulate had previously been in discussions with Goldman Sachs about a possible takeover of the management, but it is not clear if this was ever finalised.

“Apple and Goldman Sachs are focused on providing an incredible encounter for our customers to help them direct healthier financial lives,” an Apple spokesperson told CNBC.

“The award-winning Apple Card has seen a great reception from consumers, and we will continue to invent and deliver the best tools and services for them.”

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