Marcus by Goldman deploys installment loans for high value purchases
Goldman Sachs’ online retail banking division Marcus has launched an installment loan product, allowing users to split payments on big-ticket items into monthly loan payments.
Loans ranging from $ 750 to $ 10,000 are repaid over 12 or 18 months at a fixed rate of 10.99% to 25.99%, with no fees other than interest.
The product has been in development for months and was quietly rolled out in early April under the Marcus Pay brand in association with Jet Blue Airways. The coronavirus crisis ended any immediate return on investment with most planes grounded for the duration, but Goldman says other business partnerships are in the works.
During an investor briefing in February, Goldman said it wanted to increase its banking division’s consumer loans and card balances from $ 7 billion to $ 20 billion in the same amount of time.
The bank is said to be in advanced talks with Amazon to fund small business loans on the e-commerce platform.
If a deal with Amazon does materialize, it will be the second of the big tech giants to join Goldman’s Main Street march, following last year’s credit card reconciliation with Apple.
Other products in development include the launch of a digital wealth management platform later this year and a current account in 2021.