Goldman Sachs, one of the largest investment banks in the world, is planning to stop offering personal loans through its retail arm, Marcus by Goldman Sachs. The online-only bank began offering unsecured personal loans in 2016, but it has struggled to gain enough traction among consumers.
- Goldman Sachs is planning to stop offering personal loans through its retail bank, Marcus.
- The move is part of the investment bank's decision to curb its ambitions for consumer-facing banking.
- Marcus by Goldman Sachs personal loans will no longer be available to new applicants in the coming months.
Goldman Sachs' Retail Banking Ambitions Aren't Panning Out
In 2016, Goldman Sachs launched Marcus, an online-only retail bank that offered unsecured personal loans and a high-yield savings account. Now, the investment bank is dialing back on the loss-making division, according to a recent Bloomberg report.
In addition to cutting at least 400 positions at Marcus, the big bank is planning to stop originating new personal loans in the coming months. The online bank was also launching a beta rollout of a new checking account that consumers could pair with its high-yield savings product, but it's also halting that rollout.
Marcus will continue to offer its savings account, however, and remains committed to growing its customer base and deposits.
The plans are still being finalized, so it's unclear how Marcus will handle its existing loan portfolio. But if you're an existing borrower, watch out for communication from the lender. And if you're considering a personal loan, shop around and compare personal loan options to determine the best fit for you.