Goldman Sachs mulls potential sale of BNPL fintech GreenSky
US banking heavyweight Goldman Sachs is exploring the sale of its recently acquired GreenSky fintech unit.
Goldman Sachs eyes sale of fintech lender GreenSky
GreenSky, a fintech lender and buy now, pay later (BNPL) provider, was acquired by Goldman in September 2021 in a $2.24 billion deal as it looked to furnish its Marcus banking app with the platform’s capabilities.
However, 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.
Goldman has been 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 including those with Apple.
The bank’s CEO David Solomon told analysts this week that despite GreenSky performing well, “given our current strategic priorities, however, we may not be the best long-term holder of this business”.
Goldman reported Q1 2023 earnings down 19% thanks in part to a $470 million loss on the sale of some Marcus loans, which was largely offset by $440 million reserve release in provision for credit losses, Reuters reports.
In January, it was reported Goldman’s platform solutions unit, which includes its transaction banking, credit card, and fintech businesses, has lost $3 billion over nearly three years.
The news of losses from a division within the bank designed to diversify its business lent credence to the Wall Street titan’s decision to shift its focus back to its core propositions of trading and investment banking, wealth management, and transaction banking.
