Goldman to take on online lenders with launch of Marcus

Goldman to take on online lenders with launch of Marcus

Goldman Sachs' advance into the consumer banking market has stepped up a gear with the launch of online lending platform Marcus

Named after Marcus Goldman, one of the firm’s founders, the new business is looking to take on the likes of Lending Club and Prosper and provide consumers with an opportunity to consolidate their high-interest credit card debt. Borrowers can set their own monthly payment date and opt to pay back the debt over a two-to-six-year timeframe, up to a maximum of $30,000.

“For many who manage debt payments on high-interest rate credit cards, a straight-forward personal loan is a better solution,” says Harit Talwar, head of Marcus by Goldman Sachs. “Marcus offers an option for consumers who are searching for a simpler alternative to credit card borrowing, where rates can change and multiple fees can be charged.”

Marcus is treading cautiously, limiting demand initially to a select group of credit-worthy consumers who will be invited to apply via a mailbox drop containing a personal code.

Goldman's latest foray into the consumer banking business follows the April launch of an online retail bank where average Americans can open a savings account with just a $1 deposit, as the firm bids to diversify its revenue streams and shed some of the reputational and regulatory damage inflicted on the investment bank in the years since the financial crisis.

Comments: (3)

Gerard Hergenroeder
Gerard Hergenroeder - Payments Shark - Millersvile 13 October, 2016, 16:41Be the first to give this comment the thumbs up 0 likes

Many of the Fintech lending start-ups are positioning themselves to eventually be brought out by more established lenders. I am not surprised by Goldman's move. Scale, size and capital always trumps an idea with no capital.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 14 October, 2016, 11:55Be the first to give this comment the thumbs up 0 likes

@GerardHergenroeder:

While I agree with your statement "Scale, size...idea with no capital", it totally rains on the parade of so many romanticists I come across these days! On a related note, Bloomberg says "Funds Are Taking the Peer Out of Peer-to-Peer Lending".

A Finextra member
A Finextra member 14 October, 2016, 12:18Be the first to give this comment the thumbs up 0 likes

Fintech startups may continue to be the innovation arms of mainstream banks. When the scale and size attain critical mass, Fintech startups will be more than gald to be taken-over by large Banks. This type of consolidation is going to be an ongoing evolution.

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