Goldman Sachs revealed that it can reach $13 billion in new consumer loans in the next three years through its Marcus online lending business.
According to news from Reuters, the company’s Chief Financial Officer, Marty Chavez, made the announcement at the Bank of America Merrill Lynch financials conference in New York.
Launched in October of 2016, Marcus by Goldman Sachs is an online platform offering unsecured personal loans to consumers, who can apply for fixed-rate, no-fee loans of up to $30,000 for periods of two to six years. The bank has already lent over $2 billion through the platform.
“For many who manage debt payments on high-interest rate credit cards, a straightforward personal loan is a better solution,” said Harit Talwar, head of Marcus by Goldman Sachs. “Marcus offers an option for consumers who are searching for a simpler alternative to credit card borrowing, where rates can change and multiple fees can be charged.”
Talwar also recently addressed concerns that the bank may be entering the consumer lending business at a time when consumer credit conditions could be weakening.
“We’re aware the credit cycle won’t remain as benign as it had been,” Talwar said. “We are very vigilant, and we are not growing as fast as demand is … We are declining a lot more (loans) because we want to build the business in a measured pace.”
Goldman Sach’s President Harvey Schwartz said in September that Marcus can contribute $1 billion in annual revenue in three years.