Goldman Sachs Will No Longer Provide Consumer Loans
Through its retail division, Marcus, the investment bank has provided customers with personal lending options.
Marcus by Goldman Sachs, the retail division of Goldman Sachs, intends to discontinue making personal loans in the near future. Goldman Sachs is one of the greatest investment banks in the world. In 2016, the sole bank that operates online started providing unsecured personal loans 1.
However, it has been difficult for it to establish sufficient traction among customers.
Through its retail bank, Marcus, Goldman Sachs is making preparations to discontinue the provision of personal loans.
This step is being taken as a result of the investment bank’s decision to scale back its plans for providing banking services to individual customers.
In the next months, new applicants won’t be able to submit their information for personal loans offered by Marcus by Goldman Sachs.
The Retail Banking Aspirations of Goldman Sachs Are Not Coming to Fruition
Marcus was an online-only retail bank that was created by Goldman Sachs in 2016. Marcus provided unsecured personal loans and high-yield savings accounts to its customers. According to a recent report from Bloomberg, the investment bank has recently begun to reduce its focus on the section that generates a loss.
In addition to eliminating at least 400 jobs at Marcus, the large bank intends to discontinue originating new personal loans sometime within the next several months. The online bank was also preparing to put out a beta version of a new checking account that customers could use in conjunction with the high-yield savings product that it offers, but it has decided to postpone the rollout.
However, Marcus will keep offering its savings account, and the company is dedicated to expanding both its user base and the number of deposits it receives.
Due to the fact that the plans are still being completed, it is still unknown how Marcus will manage its existing loan portfolio.
If you are already a borrower, you should keep an eye out for contact from the lender. And if you’re thinking about getting a personal loan, do some research and look at a few different possibilities so you can choose the one that works best for you.