Today, Goldman Saks announced its plans to purchase B2B2C lender GreenSky for $2.24 Billion . This acquisition is subject to regulatory approval. It is expected that it will close within the fourth quarter 2020, or in the first quarter 2021.
Marcus was launched by Goldman five years ago to be a consumer-focused brand, in part because it is competing with growing numbers of fintech startups and online trading platforms. Although it’s attracted over 8 million users since its launch, it still trailed Robinhood and Chime among trading and banking apps (at the least in terms of number).
GreenSky’s purchase will allow it to bring more customers into the Marcus channel.
GreenSky is a lending platform for large-ticket items such as home improvements, elective dentistry and medical procedures . This platform allows brands such as Home Depot and medical and dental offices to offer customers installment loans at point-of-sale, increasing their sales and conversions. The loans are then sold to GreenSky by a variety of lending institutions.
This deal may be seen by Goldman as an opportunity to enter the “buy-now, pay later” market, giving Marcus customers additional financing options. This market is booming as shown by Square’s purchase of Afterpay and PayPal’s purchase of Paidy. Amazon struck a deal with Affirm to provide BNPL financing.
Stephanie Cohen is the Global Co-head for Consumer & Wealth Management, Goldman Sachs. She says that the acquisition is about bringing GreenSky customers into the Marcus environment. GreenSky can expand at any scale by being integrated into Goldman Sachs, and also lending its balance sheet.
However, Marcus and Goldman won’t be offering BNPL loans for daily shopping any time soon. Cohen claims that GreenSky is appealing partly because of the high-ticket nature home improvements lending.
We spoke to Cohen about GreenSky’s future plans and how it fits into Marcus’s and Goldman’s businesses. Below is the full interview. It has been slightly edited to improve clarity and length.
Publiated at Wed 15 Sep 2021 23.29:12 +0000