The Apple-Goldman Sachs partnership—one of the most prominent alliances in the technology and banking industry—might soon end.
This was confirmed by the iPhone maker, saying that it is considering ending its partnership with the American multinational investment bank.
Since the partnership between these two giant American firms is a prominent one, it would be a big deal for the tech industry. But, should Apple Card and services holders worry about it?
Apple-Goldman Sachs Partnership Could End Soon
Apple reportedly sent a termination proposal to end its partnership with Goldman Sachs. The giant gadget manufacturer said that it is planning to end the alliance within 12 to 15 months.
Entrepreneur reported that this means that the Apple Card, as well as the savings accounts, will be affected once the partnership reaches its end.
According to CNBC's latest report, once Apple and Goldman Sachs terminate their partnership, the iPhone maker needs to find a new financial partner if it wants to continue its Apple Card and high-yield savings accounts.
Although Apple offers its savings and credit card accounts via its official wallet app on iPhones, Goldman Sachs is still the one handling the banking back end.
For those who are unaware, the alliance between the two companies has been facing difficulties for the past few years. This is because Goldman Sachs has faced regulatory inquiries regarding its credit card operations.
These include alleged gender discrimination in credit valuations and billing errors. Aside from these external problems, internal issues also made Goldman Sachs the main spotlight in the news.
For example, Goldman Sachs CEO David Solomon was criticized because of his DJ side hustle. Because of this, he had to give up his off-hours gig after the board allegedly disapproved of it.
Should Apple Card, Savings Holders Be Worried?
Based on Apple's statements, credit card and savings holders don't have to worry if the partnership termination really happens.
"Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives," said an Apple representative.
"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," added the official.
Apple Pay and Apple Wallet Vice President Jennifer Bailey also highlighted the importance of the company's credit card and savings services.
She explained that since there are no fees, no minimum balance requirements, and no minimum deposits, Apple consumers are provided an easy way to save their money every day.
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