Via WSJ, Apple plans to cut ties from Goldman Sachs as the banking institution behind their popular Apple Card credit card and Apple high yield savings account. The company sent a proposal to complete the exit within the next 12-15 months. Apple will be working to find a new bank backer for these products.
There had been talks of Apple partnering with Amex, but apparently they need to remain on the Mastercard network for the coming few years. Another rumor is the possibility of a Synchrony partnership.
Well it’s something Google isn’t doing. The Card would probably freeze like Android ha ha
I cut ties with Apple as well, it’s not the company a savvy consumer would use.
Why did you cut ties?
Going to have to be an issuer with an appetite for risk. I don’t see it being Citi as Apple wants as many people with not very good credit approved which has partially led to GS huge losses on the card. If I was to guess it would be between Sync and Bread Financial.
Kind of glad. Every time I’d do the pre-authorization tools I’d either get some low crap number like $3,000 or if there were any other inquiries in the past few months it would say not eligible…so they are very inquiry sensitive and give shit credit limits to boot. For contrast, on the same days I’d get $15k+ credit limits from other cards. I’d imagine this was Goldman Sachs internal mechanism and I’d be fine if they closed their doors.
I’d like to see Apple fail at something so some of their more delusional sheep get brought back to reality that not everything Apple touches turns to gold, and if all the other banks refuse to pick up the card then good. The card wasn’t that good anyways. With so much profit margin and overpricing on their whole product lineup they could have easily given 5% and not bat an eye. 3%, get the fuck out of here.
I’m a huge Apple fan but they aren’t good at everything. Their products are solid quality but they’ve had a few fails over the years. As a stockholder, I like the profit margin. 🙂
But, but.. isn’t the market who decide the pricing? When you buy a $100 bill from me for $300, who should be blamed, me or you? Or you’re the type who supports governments’ taxes on the so called “extra profit” whatever that means?
Not a surprise, but Apple is big enough to run their own bank if they really wanted to.
Citi seems like the most logical choice, but it might be someone like SoFi (who have a Samsung co-branded high APR account and a national bank charter).
Muammar Ghaddafi knows a thing or two about starting a bank. Apple should ask him how it went.
Citi supposedly acquired the Sears card holders because they were old and profitable. The Apple card demographic is the opposite 😂
Citi is in cost-cutting mode right now, so I doubt they’d be willing to take the risk.
Citi’s Q2 report said their net income was down 36% and they plan to lay off “at least” 10% of employees via “Project Bora Bora.”
In the realm of business, this scenario is common: Apple shifted the burden of Customer Acquisition Costs onto Goldman Sachs, resulting in little incentive for Apple to continue the partnership once the contract ends. Apple appeared to champion the account, offering favorable rates while Goldman Sachs bore the major costs.
It’s anticipated that Apple will seek a new provider, possibly exerting pressure and causing a negative drop in rates.
Irrelevant products. They need to do better
For this crowd maybe, but they’re popular enough with the average person, especially those in the Apple ecosystem.
Agreed, everyone I know that doesn’t know a thing about finances swears the Apple card is the best card and is constantly trying to get me to open one.
“behind their popular Apple Card credit card”
certainly not popular card with this crowd.
If they paired with Citi, it might inspire Citi to fix some of their shitty IT systems.
Synch and Apple? )) April fool