Goldman Sachs follows Marcus with new online lending strategy

By Daniel Lanyon on Thursday 27 July 2017

Alternative LendingDigital Banking

The Wall Street giant is plotting a new way to the mass affluent lending market.

The Wall Street giant is plotting a new way to the mass affluent lending market. 

Just one year on from the launch of Marcus, an online lending portal, Goldman Sachs is set to launch a new fintech-style platform where investors from other rival firms can apply for loans.

Goldman Sachs Private Bank Select (GS Select), will make loans of $75,000 to $25m using borrowers' investment portfolios as collateral.

Fidelity Clearing & Custody Solutions (FCCS) -- the division of Fidelity Investments that provides clearing and custody services to registered investment advisors (RIAs), broker-dealers and family offices has entered into strategic relationships with U.S. Bank and Goldman Sachs to provide access to loans for eligible clients of the wealth management firms.

“Wealth management firms are increasingly asked to manage both the asset and liability side of a client’s balance sheet and are looking for a choice of lending solutions and providers, so we continue to see strong demand for these types of products,” said Mike Durbin, head of Fidelity Institutional Product. “By working with several of the major providers in the lending space, our platform offers firms a full suite of options to best meet their clients’ needs.”

GS Select reduces the processing time for a loan from several weeks, it says, to as little as one day by digitizing the loan origination process. The platform combines proprietary technology with personalized support from a dedicated team of lending managers to streamline the borrowing process.

“To help institutions meet their clients’ borrowing needs, we developed a new, digitized lending program. GS Select was built upon our wealth management and lending expertise to help independent advisors enhance their client relationships,” said Andrew Kaiser, head of the Goldman Sachs Private Bank. “By applying technology across the life cycle of a loan –- from origination through collateral management –- we are able to more quickly and effectively meet the needs of financial advisors and their clients.”

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