Goldman Sachs now wants to lend you money (GS, LC, ONDK)
One of the biggest investment banks on Wall Street is making a change to its business model, according to the New York Times.
Goldman Sachs is ready to lend you money. Yes, you.
Last month, the bank hired Harit Talwar, the former CMO at Discover Financial Services, as a partner.
Soon Goldman will offer loans online to both consumers and to small businesses as it looks to tap into a marketplace worth nearly $850 billion.
It's a big change for Goldman's business model — before, the only people who could obtain a loan from the bank were its high-net-worth clients.
Taking on consumer lending means taking on a growing field of competitors. Along with traditional credit providers like Wells Fargo and smaller banks, websites like Lending Club and On Deck have moved into the peer-to-peer lending business.
Goldman can establish a consumer lending business now because it converted from being an investment bank into a bank holding company during the financial crisis in order to receive protection from the federal government. It also allowed Goldman the opportunity to interact more directly with consumers.
He'll have a staff of roughly 100 and Goldman's lending unit is expecting to launch new loans in early 2016, according to the story.
Goldman Sachs did not comment when Business Insider tried to confirm elements of the Times' story.