Goldman Sachs, the financial services juggernaut, sees a big profit opportunity on Main Street.
Marcus, launched in October 2016, is the firm’s first consumer lending platform. It’s an online tool that offers fixed rate, no-fee personal loans of up to $30,000 for two- to six-year periods to borrowers with prime credit scores.
The firm sees a $1 billion opportunity in the new offering, according to a slideshow presentation by the bank’s president and co-chief operating officer, Harvey Schwartz.
In the presentation, delivered at the Barclays Financial Services Conference on Tuesday, the firm outlined how it will “prudently grow” its lending business. Marcus, according to the bank, recently crossed $1 billion in loan originations and it expects that growth to continue with $2 billion in originations by year end.
Marcus is part of a broader strategy shift by the investment bank, which is best known for trading and investment banking.
It has been expanding its retail footprint, launching GSBank.com in April 2016. GSBank.com offers customers 1.20% interest rate on their deposits, which can be as low as $1, as well as 12 month- and 5 year-term CDs. The retail platform has $15 billion in deposits, according to the presentation.