The news: Goldman Sachs abandoned developing a branded credit card for retail customers powered by the same tech it built for the Apple Card, people familiar with the matter told CNBC.
Why the change? Scrapping its credit card idea—which first arose in October 2021 to increase profits and loyalty for its retail business—boiled down to a strategy change.
- Fears of a potential economic downturn last year led several major banks to make more cautious expansion and customer acquisition plans—and Goldman was no different.
- Facing mounting losses from Marcus, its consumer banking brand, Goldman overhauled the entire unit. The business unit housing the Apple Card and parts of the Marcus brand lost $1.2 billion in the first nine months of 2022, according to a regulatory filing.
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