Goldman Sachs' online retail banking division Marcus has launched an installment loan product, enabling users to break up the payments on big-ticket items into monthly loan repayments.
Loans ranging from $750 to $10,000 are repaid over 12 or 18 months at a fixed rate of 10.99% to 25.99%, with no fees apart from interest.
The product has been under development for months and was quietly rolled out in early April under the Marcus Pay brand name in association with Jet Blue Airways. The Coronavirus crisis has put paid to any immediate return on the investment with most planes grounded for the duration, but Goldman says that other commercial partnerships are in the works.
At an investor briefing in February, Goldman said that it wanted to grow loans and card balances at its consumer banking division from $7 billion to $20 billion within the same time frame.
The bank is rumoured to be in advanced talks with Amazon to finance small business loans on the e-commerce platform.
If a deal with Amazon materialises it will be the second of the Big Tech giants to join Goldman's march on Main Street, following last year's credit card tie-up with Apple.
Other products under development include the launch of a digital wealth management platform later this year, and a checking account in 2021.