Harvey Schwartz President and Co-COO of Goldman thinks told investors this week that the firm can make $1B in extra revenue from its consumer lending business over the next 3yrs, which is as much as it expects for its trading operations. The bank’s digital consumer-lending arm called Marcus is expected to have lent out $2 billion by the end of the year.
Goldman Sachs has been pilloried for lackluster results from its trading division (paywall), so this week the bank gave investors a peek into its plans (pdf) for making more money. Surprisingly, the Wall Street powerhouse thinks it can generate as much revenue from online consumer loans—a market targeted by many fintech startups—as from buying and selling securities. Specifically, Goldman thinks it can make $1 billion in extra revenue from its consumer lending business over the next three years, as much as it expects for its trading operations. Combined with new lending for the wealthy and companies, the bank expects to bring in $2 billion in additional sales from loans. Goldman co-chief operating officer Harvey Schwartz said it’s one of the fastest-growing lending platforms ever launched, even though he says the bank is taking its time with the nascent business.