By Daniel Lanyon on Thursday 13 October 2016
Goldman Sachs has entered the alternative lending market with its new strategy to lend directly to both consumers and small businesses, as well as corporate behemoths.
“We created Marcus to help people manage their debt for a healthier financial future,”
Would-be borrowers will now be able to apply for unsecured loans up to $30,000 with initial requests only open to those in the US, and those who have received one of millions of mailed-out codes sent by the firm.
The move into the retail market is part of a wider strategy by Goldman Sachs to double-down on tech investments and to rehabilitate its image after punitive regulation and fines levelled on it in the past eight years since the fall of Lehman brought about the financial crisis.
The online ending platform is named Marcus after the 19th century founder of Goldman Sachs who emigrated to the US from Bavaria 168 years ago.
The new lending business is headed up by , who was hired last year in May. Talwar was formerly head of card services at Discover Financial. He was made a partner in the firm - one of only c.400 within the firm - 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.”