Goldman Sachs to compete with Lending Club on online lending

Goldman Sachs to compete with Lending Club on online lending

Goldman Sachs revealed on Tuesday’s earnings call that they have surveyed thousands of consumers on what they look for in an online lender, and that they plan to launch their own platform this fall. The platform will likely focus on unsecured loans and may compete directly with Lending Club.

And so here comes Goldman tiptoeing into the business with what Schwartz calls a “very deliberate and methodical approach” as LendingClub’s reputation lies in rubble — indeed with the reputation of the entire fintech marketplace-lending startup world still somewhat covered in its dust. Goldman has the experience and contacts to securitize consumer loans and sell them to investors if that’s the route it wants to take. And with 20,000 customers opening up new savings accounts on top of the $16 billion in deposits it acquired from General Electric’s online bank in the second quarter, Goldman theoretically should be able to fill in the gaps easily at times when investor demand gets skittish.

Share this post

Post Comment