Goldman Sachs could divest from its consumer lending business18. October 2023
Goldman Sachs could divest from its consumer lending business
New York, October 18, 2023
According to the Wall Street Journal, Goldman Sachs is considering exiting the consumer business
lending business, which could potentially impact its partnership with Apple.
The collaboration has produced several consumer products and services, including an Apple credit card, a high-interest savings account and a BNPL (buy now, pay later) service.
According to the Journal, Goldman Sachs is under pressure to cut losses as it grapples with expected lower quarterly profits, which could jeopardize Apple’s products.
The Apple Savings Account initially attracted attention with a 4.15% APR, but it has since lost popularity among Goldman executives, who see it as a distraction from the bank’s core business.
Partners blame CEO David Solomon for Goldman’s unprofitable expansion into consumer lending, which has led to large losses and the departure of some top executives from the division.
The products could be transferred to another bank, possibly American Express. Another option is to give Apple a larger stake in the partnership.
Earlier this year, Apple announced that customers had deposited a total of over $10 billion into their Goldman-backed savings accounts.