In August 2019, Apple and Goldman Sachs launched a groundbreaking new credit card. Designed to help consumers lead a healthier financial life, one of Apple Card’s purposes it to revolutionize the credit card experience.
The partnership between Apple and Goldman Sachs, which resulted in the Apple Card, was a strategic move by Goldman Sachs to expand its presence in the consumer banking sector. This collaboration was part of Goldman Sachs’ broader strategy to venture into new avenues and offer innovative financial products to a wider customer base.
The issue arose when it became apparent that the deal heavily favored Apple, posing significant risks and limited rewards for Goldman Sachs. The absence of fees and the provision of low-interest rates placed the burden of risk on Goldman Sachs while offering limited financial benefits in return.
For a more in-depth exploration of this story, the video below offers a comprehensive examination of this lost.