Binance Founder Sentenced to Four Months In Prison, and Goldman Retreats from Consumer Lending, Barclays to Take Over GM Cards
Hey FinTech Fanatic!
Goldman Sachs is reportedly negotiating the transfer of its General Motors credit-card program to Barclays.
This move signifies a significant development in Goldman's strategy to scale back its consumer lending operations. Barclays appears to be the frontrunner to assume the program, which boasts approximately $2 billion in outstanding balances.
Sources suggest that an agreement with GM might be finalized by the upcoming summer.
Initially, other contenders such as U.S. Bancorp and Bread Financial were considered for this acquisition but have since withdrawn from the running.
Goldman Sachs disclosed to its employees last November its intentions to sever its partnership in issuing GM credit cards, as previously reported by The Wall Street Journal.
The issuance of GM credit cards began in 2022, but Goldman has faced challenges in expanding its customer base. There has been notable frustration among Goldman's executives regarding the lack of promotional efforts for the card by GM dealerships.
This potential deal marks a critical juncture in Goldman's withdrawal from mainstream consumer lending—an initiative that has seen approximately $6 billion in losses since early 2020. This includes various consumer lending products under Goldman’s Platform Solutions unit.
As of the end of March, Goldman had around $19 billion in credit-card balances, with a substantial portion stemming from its partnership with Apple—a collaboration that is also being phased out.
Moreover, Goldman recently offloaded GreenSky, a specialty lending business, at a significant loss, to a consortium of investors.
The firm has also disposed of nearly all its personal loans, further indicating its strategic shift away from direct consumer financial services.
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BREAKING NEWS
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