``Apple's high-yield deposits were a mistake,'' says business partner Goldman Sachs, and it is also reported that it is considering withdrawing from the consumer finance business.

Until now, Apple has provided its own credit card ``

Apple Card '' and a high-yield savings account service with a yield of 4.15% together with financial company Goldman Sachs. However, the performance in these businesses has been poor, and some Goldman Sachs employees are saying, ``We should not have done this.''

Apple Card savings account was a ****ing mistake – Goldman exec

Goldman Sachs might be trying to offload Apple's credit card and savings accounts


Goldman Sachs is trying to get out of Apple Card and Savings

Goldman Sachs exec reportedly regrets Apple savings account

Apple, in cooperation with Goldman Sachs and Mastercard, announced in 2019 the Apple Card, a unique credit card for Apple Pay that can be used in conjunction with the iPhone. When you shop with Apple Card, you'll not only get 2% cash back on your spending, but you'll also never be charged late fees or annual fees.

Apple announces its own credit card 'Apple Card' linked to iPhone - GIGAZINE

Although the Apple Card was a revolutionary credit card for users, it is believed to have been one of the causes of declining profits for Goldman Sachs, with each new Apple Card user paying approximately $350 to date. It is reported that Goldman Sachs will incur a cost of (approximately 52,000 yen) and that Apple Card will lose 1.2 billion dollars (approximately 180 billion yen) in revenue in 2022.

Apple is also offering Apple Card users a high-yield savings account service with an annual yield of 4.15% starting in April 2023. This savings deposit service has succeeded in collecting deposits of 990 million dollars (approximately 136 billion yen) in just 4 days since the service started, but 'When transferring money from Apple's bank account to another bank account, We have received complaints such as 'It took several weeks to complete the process.'

Complaints are received that ``It took several weeks to send money'' to the high-yield savings account service launched by Apple - GIGAZINE

Goldman Sachs is considering withdrawing from the savings deposit service and, by extension, the Apple Card business, and there was apparently division within Goldman Sachs when the savings deposit service was launched in April 2023. One Goldman Sachs executive is quoted as saying of the savings account service, ``We should never have entered into a service like this.''

According to the Wall Street Journal, a foreign media outlet, if Goldman Sachs is unable to reduce costs for its Apple Card business, Goldman Sachs may sell its partnership with Apple to another financial company. That's what he said. However, the savings account has billions of dollars (hundreds of billions of yen) in deposits, which suggests that it cannot be easily sold.

The Wall Street Journal also reports that Goldman Sachs is in talks with fellow financial company American Express about selling its Apple Card and savings account services. However, American Express has expressed concerns about losses due to the Apple Card business and the fact that it operates on the MasterCard network, and there has been no progress at the time of writing regarding the sale of the business.

in Mobile,   Web Service, Posted by log1r_ut