Goldman Sachs CEO Lloyd Blankfein on Consumer Lending With "Marcus"
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).
JetBlue officials say a plane rocked back with its nose pointed skyward after landing at New York's John F. Kennedy International Airport because of a shift in weight on the aircraft.
Big Business This Week is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street. This week we highlight Rivian, Costco, Nokia, Wyndham Hotels & Resorts, Choice Hotels and Rite Aid
Spirit Airlines canceled about 100 flights on Friday after pulling some planes out of service for inspections, and the airline expects the disruptions to last several days.
CVS Health is pulling from its shelves some cough-and-cold treatments that contain an ingredient that has been deemed ineffective by doctors and researchers.
It's almost that time of year - it's open enrollment season. Nate Black, vice president of health solutions product development with Voya Financial, joined Cheddar News to explain the critical decision-making needed when choosing the best coverage for you and your family.
