All articles tagged with #consumer lending
Apple is ending its credit-card partnership with Goldman Sachs, signaling the end of the bank's attempt to expand into consumer lending. The tech giant has proposed to exit the contract within the next 12-to-15 months, covering their entire consumer partnership, including the credit card launched in 2019 and the savings account introduced this year.
Goldman Sachs is reportedly facing internal pressure to exit the consumer-lending space, with the Apple Card partnership seen as a distraction from its core business. The bank's third-quarter earnings, expected to be significantly down, may lead to the offloading of Apple's financial products onto another bank. While Goldman's stock has declined this year, the high-yield Apple savings accounts remain popular and attract billions in deposits. The partnership between Goldman Sachs and Apple, once praised as innovative, is now under scrutiny, with some questioning whether the foray into consumer banking was a mistake.
Goldman Sachs is reportedly looking to exit the consumer lending space, just four years after entering it. The firm's decision to pull back comes as a surprise to many, considering the competition it posed to traditional consumer banks. The move follows the launch of a joint savings account with Apple, which received mixed reviews internally.
Goldman Sachs reported a 58% drop in profit as the bank scaled back on consumer lending, reflecting a shift in strategy towards its core businesses. The decline in profit comes as the bank focuses on its traditional strengths in investment banking and wealth management, while reducing its exposure to riskier consumer lending activities.