Apple is reportedly in discussions with JPMorgan Chase to take over the tech giant's flagship Apple Card program from Goldman Sachs. This move comes as Goldman Sachs shifts away from its retail banking strategy, which has proven to be less successful than anticipated.
Goldman Sachs' decision to exit retail banking highlights the challenges banks face in this sector. The firm has been grappling with losses and regulatory scrutiny related to its Marcus retail banking platform.
JPMorgan Chase, the country's largest credit card issuer, is well-positioned to take over the Apple Card program. The bank has the scale, resources, and expertise to handle the high volume of transactions and customer base associated with Apple's flagship credit card.
JPMorgan Chase is reportedly seeking to pay less than face value for the Apple Card portfolio due to the elevated losses. The bank is also looking to eliminate the calendar-based billing feature, which has proven to be a logistical challenge.
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