Goldman Sachs, a leading global investment banking, securities, and investment management firm, has reportedly been grappling with its decision to partner with Apple on the Apple Card. The bank's venture into the consumer finance sector, particularly with the Apple Card, has been marked by significant financial losses and operational challenges.

According to a recent report from Gizmodo, the bank is actively seeking to distance itself from the Apple Card business. This sentiment was further echoed in an article by AppleInsider, where it was revealed that Goldman Sachs lost a staggering $1.2 billion in 2022, primarily due to the Apple Card. The bank's consumer lending endeavors, which were a departure from its traditional focus on serving corporations, financial institutions, and governments, have not been as profitable as anticipated.

9to5Mac highlighted an unnamed Goldman Sachs executive's reaction to the announcement of the Apple Card savings account, stating, "We should have never done this f-ing thing." This candid response underscores the bank's dissatisfaction with the partnership. The Apple Card savings account, launched in April 2023, was met with mixed reactions within Goldman Sachs. While some bank executives promoted the new offering during a town hall meeting, others expressed immediate reservations.

Goldman Sachs' challenges with the Apple Card extend beyond financial losses. The bank is currently under investigation by the Consumer Financial Protection Bureau for alleged failures in addressing errors and refunding cardholders promptly. A unique arrangement, where all Apple Cardholders receive their bills on the same date, has reportedly overwhelmed customer service representatives, leading to operational inefficiencies. This arrangement diverges from the standard practice in the consumer lending industry, where billing dates are staggered to manage customer service workloads.

The bank's efforts to offload the Apple Card partnership have been met with challenges. While discussions with American Express (Amex) have taken place, the feasibility of such a deal remains uncertain. Amex's strong brand presence and the Apple Card's financial performance might be potential roadblocks to a successful transition.

Some Goldman Sachs employees have proposed that Apple take on a more significant role in the partnership, such as becoming the lender for new credit card spending and issuance. However, this idea has not gained traction within either company and has not been discussed at senior levels.

In conclusion, Goldman Sachs' partnership with Apple on the Apple Card has been fraught with challenges, both financial and operational. As the bank evaluates its next steps, the future of the Apple Card remains uncertain.