By Daniel Lanyon on Monday 22 August 2016
Goldman Sachs will soon enter into the alternative lending market, with plans to lend directly to both consumers and small businesses.
Goldman Sachs’ soon to be launched online marketplace lending platform will be known as Marcus after its 19th century founder not Mosaic as previously reported.
It has been known for some time that the Wall Street bank was looking to launch into Main Street but its name was unknown.
Marcus Goldman founded his eponymous company in 1869, later changing the name to its modern format after hiring his son-in-law. Today it is one of the largest and best known investment banks. Its latest project is to move into the banking disruption marketplace lending space, somewhat ironically. Until now that project was known as Mosaic.
Marcus will be rolled out in October, the New York Times reports, and clearly demonstrates that blue chip institutions are increasingly looking to fintech and alternative finance models in areas of the market that investment banking giants such as Goldman Sachs have traditionally dominated.
The new lending business is headed up by Harit Talwar, who was hired last year May. Talwar was formerley head of card services at Discover Financial. He wasmade a partner in the firm - one of only c.400 - soon after.
Upon hiring Mr. Talwar in May, Chief Executive Lloyd Blankfein and COO Gary Cohn said: “The traditional means by which financial services are delivered to consumers and small businesses is being fundamentally reshaped by advances in technology, maturity of digital channels, use of data and analytics, and a focus on customer experience.”