Finance giant Goldman Sachs has been around for nearly 150 years and is best known as an investment banking outfit, but in the wake of the global financial crisis of 2008 that has permanently altered the fabric of the financial services market and led to the rise of fintechs, the firm, like so many other finance behemoths, began transforming itself.
GS Bank has since been merged into Marcus, which now serves as Goldman's consumer brand.
As QZ pointed out, "Goldman thinks it can make $1 billion in extra revenue from its consumer lending business over the next three years, as much as it expects for its trading operations."
As detailed by the Wall Street Journal, Goldman is reportedly in talks with Apple to offer buyers of Apple devices financing at point-of-sale.
So if Goldman can position Marcus to offer loans for Apple device purchases, it could be a real shot in the arm for Goldman's consumer brand.
A number of consumer lending upstarts have targeted point-of-sale to reach consumers.
Affirm, which bills itself as a "financial company for everyday people", reportedly has over 1,000 merchant partners and is said to have originated more than a million loans with an average order size of $750.
Goldman's advantages By embracing a similar model to grow its consumer lending business, Goldman could find that it has some big advantages over smaller upstarts like Affirm.
Second, Goldman's size means it has more capital to lend and it will likely be able to offer interest rates that are more competitive than upstarts.
So if Goldman can ink the right deals and deliver customer experiences that are on par with successful fintechs, it's entirely possible that it could quickly become a dominant player in this space.