NEW YORK: Goldman Sachs Group Inc is in discussions with Amazon.com Inc to offer small-business loans through the tech giant’s platform, according to a person with knowledge of the matter.
The move marks another chapter in the Wall Street firm’s efforts to seek new lines of business to boost revenue outside its traditional strengths of trading and investment banking.Should the two companies reach a deal, Goldman will be adding itself to Amazon’s lending platform, which has been in place for years and is used as a way to strengthen the online retailer’s ties with small-business clients. The loans are used mostly to provide merchants on the Amazon.
The plans fall in line with Goldman’s bid to diversify, which already includes new saving accounts, unsecured loans for customers and a high-profile partnership with Apple Inc on a co-brand credit card. Goldman is fresh off its investor day, when it made a pitch for embracing the bank model as it reorients to a new reality in which old growth engines such as trading don’t guarantee it the same standing at the top of Wall Street as they once did.Expect Goldman to roll out more products and services as it seeks new incremental lines of revenue. The firm laid out a goal of boosting return on equity to more than 13% in the next three years, up from the 11.
The Financial Times reported on Goldman’s talks with Amazon.com earlier Monday. A spokesman for Goldman declined to comment. An Amazon representative didn’t immediately respond to a request for comment.