Goldman Talks to Amazon About Potential Small Biz Online Lending Platform

Goldman Sachs (SG) – Get the report from Goldman Sachs Group, Inc. considering teaming up with Amazon.com (AMZN) – Get the Amazon.com, Inc. report in a successful partnership that would see the financial services giant offer loans to small businesses on the tech company’s online lending platform, the Financial Times reported.

The two companies are in “advanced talks” over the potential deal, which gives Goldman the opportunity to break into a lucrative area of ​​consumer banking without having to deploy an expensive branch network.

Amazon is currently developing the technological capabilities to offer loans to small and medium-sized businesses through Amazon’s online lending platform, with the business potentially ready to go in March, according to the Financial Times, which cited two close sources. talks. The new loan company would likely be called Goldman.

Shares of Goldman and Amazon rose on Monday amid news of the potential deal. Goldman rose 1.54% to $ 241.40 per share, while Amazon edged up 1.22% to $ 2,033.21 per share.

News of the potential deal comes as Goldman makes a major push to boost profits by expanding into the consumer credit and retail banking sectors at a time when trading demand slows amid the surge. into the power of passive investment strategies.

On Goldman’s very first day of investing last week, Goldman CEO David Solomon laid out plans to increase returns through mid-teens or beyond over the next three years as the financial services company is stepping up efforts in areas such as consumer banking, banking and wealth. management.

Goldman had $ 60 billion in consumer deposits as of Dec.31, while having issued an additional $ 7 billion in credit card debt and other loans, according to Reuters.

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David A. Albanese