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Goldman says $2.2B purchase of BNPL provider GreenSky will help expand Marcus – TechCrunch

Goldman this morning Sax announces plans to buy B2B2C lenders GreenSky so Transactions worth $ 2.24 billion.. The acquisition, which still requires regulatory approval and is scheduled to close in the fourth quarter of 2020 or the first quarter of 2021, will strengthen the company’s consumer business and attract consumers to the company. It aims to provide new products and new methods. Marcus of Goldman Sachs Brand of financial products.

Goldman launched Marcus five years ago as a consumer-centric brand. This is to counter the growth of FinTech start-ups, Neobanks and online trading platforms that have sprung up over the last decade.It has attracted 8 million users since its launch, but is ahead of many. So-called Challenger Bank — Marcus is chasing Chime and Robin Hood between banking and trading apps (at least for the number of users).

But with the purchase of GreenSky, we want to add another way to get consumers into Marcus’ goal-achieving process.

GreenSky operates a platform that facilitates the financing of high-value products such as: Home renovation project Also Selective dental or medical procedure.. This will allow brands like Home Depot to offer installment loans to customers at the point of sale, as well as medical and dental practice, which will increase customer sales and conversions. GreenSky then sells these loans to many banks and other lending partners.

This transaction can be seen as a way for Goldman to enter the “buy now and pay later” trend and provide Marcus users with an additional way to raise funds for their purchases.That market Recently took offAs proved by Square’s acquisition of Afterpay, PayPal’s acquisition of Paidy, When Amazon signs a contract to provide BNPL financing through Affirm..

But according to Stephanie Cohen, Global Co-Head of Consumer & Wealth Management at Goldman Sachs, the acquisition is just as important as pulling GreenSky’s customers into the Marcus ecosystem. She also believes that by bringing GreenSky to Goldman Sachs and renting out its balance sheet, there is no limit to the scale at which it can grow.

That said, don’t expect Goldman or Marcus to soon start offering BNPL rentals for their daily shopping. Cohen says Green Sky is attractive because of the expensive nature of home renovation rentals.

To learn more about the company’s plans, we talked to Cohen about the deal and asked how GreenSky fits into Marcus and other Goldman businesses. Below is a complete interview, slightly edited for length and clarity.

Goldman says $2.2B purchase of BNPL provider GreenSky will help expand Marcus – TechCrunch Source link Goldman says $2.2B purchase of BNPL provider GreenSky will help expand Marcus – TechCrunch

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