Magazine article American Banker

Goldman Sachs Begins Offering Consumer Loans

Magazine article American Banker

Goldman Sachs Begins Offering Consumer Loans

Article excerpt

Byline: Kristin Broughton

It's official: Goldman Sachs, the Wall Street investment banking titan, now offers consumer loans.

The company on Thursday morning launched its long-awaited online lending platform, known as "Marcus by Goldman Sachs."

The move marks a major step forward in Goldman's long road into bread-and-butter banking. It also is a rare example in the banking industry of a company that has developed an online loan operation from scratch.

Borrowers can qualify for fixed-rate, unsecured personal loans of up to $30,000. The loans include no fees and terms of between two and six years, according to a press release.

In addition, the Marcus platform allows borrowers to customize certain aspects of their loans, including the monthly payment date. No additional details about underwriting or minimum credit scores were provided.

Goldman said in the release that the platform fills a gap in the market, providing both the service of a retail bank and the simplicity of an online lender. The company also described the loans as an alternative to credit cards for customers with significant personal debt.

Over the past year, banks across the industry have embraced fast-decision loans to better compete with fintech rivals such as Lending Club.

For instance, the $126 billion-asset Regions Financial this week began offering online personal loans in partnership with the marketplace lender Avant. Wells Fargo also developed its own in online business loan program in May. …

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