- Goldman Sachs launched
- The business hit a $2 billion milestone last night, according to CFO Marty Chavez.
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Goldman Sachs' new online lending business just hit a $2 billion milestone (GS)
The US bank launched online lending business Marcus last October, and passed the $1 billion mark this summer.
Goldman Sachs' Marcus business just hit a $2 billion milestone.
The US bank launched online lending business Marcus last October, and passed the $1 billion mark this summer. In a September presentation, the bank said it expected to have lent out $2 billion by year end.
But in a presentation on Tuesday, chief financial officer Marty Chavez said the bank hit that milestone last night, suggesting the platform may be picking up momentum in terms of issuing loans. According to the presentation, Marcus had $1.96 billion in originations as of November 9, which would imply $40 million in new loans in four days.
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Chavez also delivered more information on the makeup of the Marcus loan book in the presentation, delivered at a Bank of America Merrill Lynch event. The loan portfolio has an average APR of 12%, which compares with charges of 16% plus on credit card balances. The loans have an average tenor of four years, with an average loan amount of $15,000, according to a slide from the presentation deck.
The bank has previously said that it sees a $1 billion revenue opportunity in the Marcus loan and deposit platform. Chavez said Tuesday that Goldman Sachs can see a $13 billion lending opportunity with Marcus over three years, assuming a 6% market share in what Goldman calculates is a $200-$250 billion addressable market.
More to follow
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