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.