Goldman Sachs is launching an online lending business for consumers and small businesses, according to an internal memo.
It will allow the bank to provide loans more quickly via the internet, helping it to compete with the likes of the Lending Club, for which it was a lead underwriter only six months ago.
The memo, seen by AFP, says the new business will provide “digitally-led banking services without the burdens of legacy costs and fixed infrastructure”.
The traditional means by which financial services are delivered to consumers and small businesses is being fundamentally re-shaped by advances in technology, maturity of digital channels, use of data and analytics and a focus on customer experience.Today, we see an opportunity to leverage our competencies in technology and risk management to capture this opportunity at accretive returns and without the burdens of legacy costs and fixed infrastructure.
The system will work by funding loans directly from its New York chartered banking subsidiary, which was set up during the financial crisis in 2008.
Harit Talwar, previously head of card services for Discover Financial Services, will lead the team. He joined Goldman in April this year.