Marcus was introduced to the public for the first time on Thursday and connects regular folks with the major Wall Street bank. By loaning directly to consumers, Goldman Sachs presented itself as a competitor to online lending names such as LendingClub Corp LC.
The Wall Street Journal noted that Goldman Sachs' entry to the market comes at a time when online lenders are recovering from a "tumultuous" year, as institutional investors that buy loans from lenders "bolted early in the year," not to mention a major scandal involving LendingClub's CEO Renaud Laplanche, who was forced to resign from the company.
Goldman Sachs has a notable advantage in the fact that it will fund the loans from its own $130 billion deposit base and doesn't plan on selling the loans to outside players. Clients won't be charged an upfront fee and clients are charges just a small percentage of the loan.
It isn't yet known if the loans itself will be more competitive than its peers but Goldman Sachs' lowest rate of 5.99 percent is equal to LendingClub's lowest rate.
Goldman Sachs' platform also allows for clients to choose payment terms, which vary the payback term and amount paid.
Finally, Marcus is only pre-screening borrowers with a focus on individuals with card-card debt and these individuals will be mailed an offer code which can be redeemed online. An online application is in the works and will be available in the coming months.
Bottom line, the Wall Street Journal suggested the bank isn't "dropping the velvet rope entirely" but is "starting out with a strict bouncer."
Full ratings data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
