Goldman Sachs, the white-shoe investment bank, launches installment loan business with JetBlue

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Goldman is building out its Marcus brand with installment loans, a digital wealth management tool and a checking account to diversify its businesses.

"This is a natural next step for Goldman," said Ian Kar, author of the newsletter. "The installment product turns Marcus into a payment method, helps it become more top-of-mind for users, and break into the everyday lives of their customers."

The partnership was in development months before the coronavirus pandemic put a halt to most air travel. Since few people are booking travel for trips happening soon, MarcusPay appears as a payment option for vacation packages that happen in the fall of this year, according to a person with knowledge of the situation. A JetBlue spokeswoman confirmed it was the inaugural partner for the Goldman product.

Other partnerships will follow, as Goldman has made it clear that embedding its services with large corporations is a key part of its strategy. "During this time our number one priority is the health and safety of our customers," said Abhinav Anand, head of consumer loans for Marcus. The new service will enable JetBlue customers to "buy what matters to them, when it matters, and to pay for it in equal payments with no fees or upfront payment."

The bank wants to double the consumer deposits it holds to $125 billion over the next five years and generate $700 million to $900 million in pretax income excluding reserves in the division.

 

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