A quarter into 2025, where are Goldman and Apple steering their strategies next?
- We look at what’s been unfolding at Goldman Sachs and Apple since the start of the year.
- With consumer banking behind, Goldman bets on AI, while Apple’s fintech push hits turbulence with internal leadership and tech woes.
Checking In: Where do Goldman Sachs and Apple stand in their individual endeavors?
Today, I’d like to talk about two partners of a formidable alliance that set out to reshape partnerships in financial services. One brought technological prowess, the other financial muscle — but their grand collaboration didn’t unfold as expected. If you’ve connected the dots, yes, I’m talking about Apple and Goldman Sachs.
Today, though, Goldman is back doing what it does best, investment banking and trading, while pushing forward to deepen its AI-related experiments across the business. And Apple is recalibrating its tech and financial services strategy.
We look at what’s been unfolding at both firms since the start of the year. But first, we check in on the current status of the Goldman-Apple partnership.
The Goldman-Apple credit card business
Apple’s high-profile partnership with Goldman Sachs, which began in 2019, soured quickly.
The collaboration at first seemed like a strategic masterstroke — Apple sought a gateway into the financial world, while Goldman was set on overhauling its business around new, modern consumer offerings. But like many business alliances, differing priorities and operational realities led to a quiet unraveling.
The Apple Card, a sleek, consumer-friendly alternative to traditional credit cards, turned into a liability. While uptake of the card was quick, the business model never made sense for GS, which was saddled with all the responsibility for a weird lending portfolio that was rapidly deteriorating. And unlike the old adage, Goldman couldn’t make up for it on volume. Come 2024, Goldman, bleeding money from its consumer banking foray, was eager to offload the Apple Card portfolio. Regulatory scrutiny added further woes, as Apple and Goldman were fined millions for mishandling credit disputes. What once looked like a one-of-a-kind move forward in consumer finance started to resemble a costly miscalculation.
Several financial firms are now competing to take over Goldman’s role in Apple’s credit card partnership. Reports surfaced that Apple was in talks with J.P. Morgan Chase and now Barclays and Synchrony to take over the program. While lenders see potential in working with Apple, many are wary of the original deal’s risks and profitability challenges.
Although Goldman’s credit card agreement with Apple runs until 2030, CEO David Solomon indicated in this year’s January earnings call that the partnership could end sooner.
Inside Goldman Sachs, a quarter into 2025
Checking in on Goldman’s trajectory since the beginning of 2025:
1. Goldman’s new Capital Solutions Group to grow its private credit business
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