Being the bank backing the Apple Card isn’t going well for Goldman Sachs, and it’s proposed a change that’s it thinks would make the job easier: stop billing every customer at the beginning of the month.
But some bank executives say the whole deal with Apple is untenable. “We should have never done this f—ing thing,” a Goldman partner is quoted as saying by the Wall Street Journal.
Goldman Sachs made rookie mistakes with Apple Card
News that Goldman Sachs’ foray into consumer lending is not going well first surfaced in June with word the division of the company that includes Apple Card lost $3.03 billion in about three years. Much of that can be attributed to the credit card.
One of the problems the bank is having is that every Apple Card holder gets their bill at the beginning of the month, according to the WSJ. That means that Goldman Sachs’ customer service department is flooded with complaints for one week a month, then sits mostly idle the rest of the time.
The bank’s proposal is to scatter the billing dates through the month, as nearly every other credit card company does. But that beginning-of-the-month bill is a signature feature of Apple Card and Apple is supposedly unwilling to give it up.
Getting out?
Goldman Sachs is a Wall Street bank that tried its hand at the consumer market with Apple Card, Apple Card Saving accounts, and the GM credit card. It’s been a bust and the company allegedly wants out.
It’s reportedly held talks with American Express about selling the Apple Card, but no deal has been announced.
