As investment banks continue to enter the consumer finance sector, Goldman Sachs acquired digital lender GreenSky for US$2.24 billion.
GreenSky’s Allstock transaction was called the largest fintech home loan platform in the press release announcing the transaction and is expected to be completed in the first quarter of 2022, the two companies announced on Wednesday. GreenSky stock rose 44% in the hours before trading stopped.
“Our goal is clear. Marcus will become the consumer banking platform of the future, and the acquisition of GreenSky is moving towards this goal,” Goldman Sachs CEO David Solomon said in a press release. “GreenSky and his talented team have built an impressive cloud-native platform that allows Marcus to reach a new and active group of merchants and customers.”
This move helped Goldman Sachs break into the consumer finance business. This is him Excellent opportunity outside of yourself is a historical area of investment banking, trading and wealth management for the rich. Five years ago, Goldman Sachs began to engage in retail banking with its Marcus credit brand. Since then, it has added automated investment and personal finance businesses, and has established partnerships with Apple, JetBlue Airways and Amazon.
The bank stated that the GreenSky transaction expanded its customer base and gave it access to the fintech network of more than 10,000 merchants.