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 repayments.
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 has undermined any immediate return on investment with most planes grounded for the duration, but Goldman says other business partnerships are on the way.
At an investor briefing in February, Goldman said it wanted to grow loans and card balances in its consumer banking division from $7 billion to $20 billion over the same time frame.
The bank is rumored to be in advanced talks with Amazon to fund small business loans on the e-commerce platform.
If a deal with Amazon materializes, it will be the second of the Big Tech giants to join Goldman’s march on Main Street, following the credit card tie-up with Apple last year.
Other products in development include the launch of a digital wealth management platform later this year and a checking account in 2021.