| NEW YORK
NEW YORK Oct 13 Goldman Sachs Group Inc
has launched a new online lending business that targets
borrowers saddled with credit-card debt, the bank said on
The business, called Marcus, represents Goldman's first
major foray into consumer lending as it tries to earn more from
the $124 billion in deposits it has on its balance sheet.
Marcus, which kicked off on Thursday, will offer
uncollateralized personal loans of up to $30,000 to borrowers
who meet certain credit requirements, according to a press
release. The business will focus on customers who want to manage
their credit card debt, Goldman said.
The bank hired former Discover Financial Services
executive Harit Talwar more than a year ago to help formulate a
digital lending strategy. It surveyed thousands of consumers
about their borrowing experience and found they were frustrated
by hidden fees, changing interest rates, boilerplate payment
options and difficulty in reaching a human customer-service
representative when they encountered problems.
As a result, Marcus does not have any fees, has a fixed
rate, allows customers to create their own payment dates and
offers live customer support representatives. Goldman noted they
are based in the United States.
Marcus aims to be a "simpler solution" for borrowers than
cards, Talwar said in a statement. Goldman plans to tweak the
platform in response to customer feedback.
Marcus represents part of Goldman's long-running effort to
reinvent itself after the 2007-2009 financial crisis, during
which it obtained a banking license and came under scathing
criticism for profits it earned from the U.S. mortgage market's
Earlier this year, Goldman launched a complementary
deposit-taking platform after acquiring GE Capital's online
bank. Its moves are similar to those of chief rival Morgan
Although Marcus is a digital platform, borrowers will
initially only be able to apply for a loan after receiving a
code in the mail. As of Thursday, borrowers can use those codes
(Reporting by Olivia Oran; Writing by Lauren Tara LaCapra)