Goldman Sachs regrets Apple Card, calls it a “mistake” and is trying to escape the deal ASAP 😳; The biggest market in FinTech nobody’s talking about 👀

FinTech is Eating the World, 16 October

Hey Everyone,

Happy Monday! We’re starting the new week with two solid FinTech stories. We are going to look at Goldman Sachs which regrets Apple Card, calls it a “mistake” and is trying to escape the deal ASAP (unpacking what’s happening & what’s next + lots of bonus reads and deep dives), and the biggest market in FinTech nobody’s talking about (it’s a gem hiding in plain sight!). Let’s jump straight into the awesome stuff 🌶

Goldman Sachs regrets Apple Card, calls it a “mistake” and is trying to escape the deal ASAP 😳

The news 🗞️ Goldman Sachs GS 0.00%↑ is rapidly retreating from its foray into consumer finance, according to a recent Wall Street Journal report.

The banking giant is scrambling to exit its troubled Apple Card partnership, with one executive reportedly calling the card a "f****** mistake" soon after the launch of an Apple AAPL 0.00%↑ savings account in April 👀

Let’s take a look at this mess.

More on this 👉 The moves follow billions of dollars in losses in Goldman's consumer lending unit. Internally, many partners are frustrated with what they see as ill-advised expansions into areas like personal loans and credit cards under CEO David Solomon.

The unit that includes these lending products has lost heavily, and Goldman is now already selling GreenSky at a steep discount just a year after acquiring it.

ICYMI: Finally: Goldman Sachs sells troubled FinTech lender GreenSky 🤝💰

Before that, GS did another retreat from the mass-market banking arena, selling off its Personal Financial Management (PFM) unit to Creative Planning.

ICYMI: Apple should have bought Goldman Sachs’ PFM unit. Here’s why 🍎 [a deeper dive + more bonus reads]

The forbidden fruit 🍎 But the Apple relationship has been particularly painful. Goldman Sachs reportedly spent $350 for every new Apple Card user. In 2022, GS lost a whopping $1.2 billion, chiefly because of the Apple Card. Hence no wonder it wants out fast….