By
Godfrey Benjamin
April 23rd, 2024
Meanwhile, Goldman Sachs recently cut back on its ambition to become a major player in consumer banking in the US.
Investment banking company Goldman Sachs (NYSE: GS) is retracting from its plans to develop a branded credit card for customers. CEO David Solomon said a while ago that the financial institution was working on its own card. The new Goldman Sachs credit card was supposed to roll out on the same platform used for the Apple Card partnership in 2019. At the time, Solomon referred to the banks’ unveiling of the Apple Card as “the most successful credit card launch ever.” Goldman also confirmed a high demand for the product, which it satisfied smoothly.
Goldman Sachs Dismisses Credit Card Idea
A Goldman credit card is part of the CEO’s vision to continually offer solutions to Americans and Solomon has been exploring means of expanding the core capabilities of the investment banking company. If Goldman had not checked out of the credit card idea, it would have been included in the suite of products designed to advance the profit margins and loyalty of the company’s retail effort. Reliable sources noted that a digital checking account is also part of the incoming suite of products. The Goldman CEO withdrew from the credit card race after a stormy 2022. Although launching a bank-branded card would have been a major development for Goldman, it would have also resulted in more costs than partnering with an external brand. At the same time, the investment banking company would have had to grow its own customer base by exploring all marketing tools.
The idea of a credit card by Goldman Sachs first came to the limelight in 2021. When asked by analysts about his product roadmap, the executive revealed the idea of using the platform created for Apple Card to roll out the bank’s card.
“We have our own credit card platform that I think is really differentiated, and we’re onboarding both other partnerships, but also have the opportunity for a proprietary card that’s in development.”
People familiar with the card situation at Goldman revealed that the bank had not taken a major step towards the realization of the vision. Meanwhile, Goldman Sachs recently cut back on its ambition to become a major player in consumer banking in the US. Notably, all these happened under Solomon’s leadership.