Goldman Sachs’ move into consumer lending may seem like a bit of a departure for the investment banking giant. But CEO Lloyd Blankfein says its expertise in fintech makes the business a good fit.
“If you are lending money to 5 million people, it’s a little bit more math, a little bit more algorithmic, a little bit more about digital delivery,” the executive told Cheddar.
“And in this new world that we’ve entered into, to be a good consumer lender, it’s advantageous not to have legacy assets like branches, to have lower costs, and to be able to engage with your client and offer them flexible products digitally, and then to manage that with skills that everybody recognizes we have.”
The company launched “Marcus by Goldman Sachs”, a digital consumer loan platform, in October 2016. Through November, the business had already issued $2 billion in loans.
Blankfein says Goldman Sachs offers an advantage competitors can’t.
“We already have deposit taking where we give a very high interest rate, because you don’t have to pay for branches,” he said. “And the consumer business, where we’re certainly charging people a lot less than what they’re paying on their credit card balances. So it’s good for the consumer, good for Goldman Sachs, and probably good for the country.”
Blankfein says the business will “move the needle for Goldman Sachs.”
For full interview [click here](https://cheddar.com/videos/goldman-sachs-ceo-lloyd-blankfein-weighs-in-on-market-volatility-crypto-and-trump).
Artificial intelligence is the biggest buzzword at the World Economic Forum’s annual meeting in Davos. Advances in generative AI stunned the world last year, and the elite crowd is angling to take advantage of its promise and minimize its risks.
Smartphones could get much smarter this year as the next wave of artificial intelligence seeps into the devices that accompany people almost everywhere they go.
The plans would include nearly 20,000 homes initially for 50,000 residents and could grow to 400,000 people.
In an annual assessment of global inequalities, Oxfam International said the first trillionaire could emerge within the next decade — as the anti-poverty organization pointed to the growing wealth gap that skyrocketed globally during the pandemic.
The Biden administration proposed a cost drop for overdrawing bank accounts, which it says could particularly relieve Americans living paycheck to paycheck.
With thousands of layoffs in tech and beyond, how workers can keep their skills sharp, plus reasons to be hopeful when looking at the job market.
Taking a look at investment strategy as the new year gets into full swing.
Americans stepped up their spending in December more than expected, closing out the holiday season and the year on an upbeat tone. The Commerce Department said retail sales rose 0.6% in December compared with a November’s 0.3% increase.
A New York architect charged in a string of slayings known as the Gilgo Beach killings was accused in a 25-year-old Connecticut woman's death.
Uber purchased Drizly in a cash-and-stock deal for $1.1 billion in 2021. The drink delivery app will shut down in March, according to Uber.
