Goldman Sachs is considering selling its fintech lender and buy now, pay later (BNPL) provider GreenSky, which it acquired in September 2021 for $2.24 billion. The bank is focusing on its core propositions of trading and investment banking, asset and wealth management, and transaction banking.
Facts
- Goldman Sachs is exploring the sale of its recently acquired fintech unit GreenSky.
- GreenSky is a BNPL provider that was acquired by Goldman Sachs in September 2021 to furnish its Marcus banking app with the platform’s capabilities.
- Goldman Sachs folded its digital bank offering Marcus into its wider asset and wealth management division in October 2022 as the firm shifted its focus away from its retail banking proposition.
- The bank is working to scale down its retail banking activities and instead focus on three divisions: trading and investment banking, asset and wealth management, and a third division including transaction banking and other partnership operations.
- Goldman Sachs CEO David Solomon said that “given our current strategic priorities, however, we may not be the best long-term holder of this business”.
- Goldman Sachs reported Q1 2023 earnings down 19% due in part to a $470 million loss on the sale of some Marcus loans.
- In January, it was reported that Goldman’s platform solutions unit, which includes its transaction banking, credit card, and fintech businesses, had lost $3 billion over nearly three years.
