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Goldman Sachs' Online Lending Platform Named Marcus Is Now Live

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Goldman Sachs' Online Lending Platform Named Marcus Is Now Live

The Wall Street Journal reported on Thursday that Goldman Sachs Group Inc (NYSE: GS)'s online consumer-lending platform, named Marcus, is now live.

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 (NYSE: 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.

Related Link: LendingClub CEO Is Out, Shares Tumble 25%

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."

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