Goldman appears to be eyeing the "point-of-sale" finance business, and hopes to partner with Apple to offer loans on new iPhone purchases. The move would put the bank in competition with fintechs such as Affirm and GreenSky.
Shoppers in 2017 borrowed more than $200 billion for purchases using credit cards affiliated with retailers or point-of-sale loans, consulting firm First Annapolis estimates. Some $80 billion went toward big-ticket items like furniture and electronics that can take months to pay off, racking up extra interest as borrowers roll over balances from month to month. By offering a lower-cost loan, Goldman hopes to siphon off some of that business. Goldman charges 12% interest on its average Marcus loans. Credit cards can charge upward of 20% and carry late fees and other charges. The partnership would be a coup for Goldman as it tries to grow its new consumer bank. Better known as an elite adviser to corporations and governments, Goldman is embracing retail banking and plain-vanilla lending in pursuit of growth as some traditional areas of strength, namely trading, slump.