Dive Brief:

• Goldman Sachs is looking to offload GreenSky, the installment-lending fintech it bought for $2.24 billion last year, CEO David Solomon told analysts Tuesday.
• The comments lend more structure to Solomon’s assertion, during the bank’s investor day in February, that Goldman was “considering strategic alternatives” for its consumer business.
• Goldman bought Atlanta-based GreenSky in an all-stock deal in March 2022 in an effort to combine the firm’s products with its consumer-banking platform Marcus.

Dive Insight:

Following the close of last year’s GreenSky deal, Solomon called the fintech a “key component” to help the firm “build the consumer banking platform of the future.”

At the time, Goldman said it aimed to give its consumer-banking customers an avenue to pursue buy now, pay later loans for one-off purchases, such as home improvement projects and healthcare spending.

However, losses at Marcus, combined with the bank’s concerted effort to pull back from the consumer market, means GreenSky may no longer have a place in Goldman’s portfolio.

Solomon told analysts Tuesday that the bank sold $1 billion of its Marcus loan portfolio and put the remainder up for sale — a move he described as “an example of our narrowing our focus in the consumer space.” That move came at a $470 million loss, which was largely offset by a $440 million reserve release in provision for credit losses, the New York City-based bank noted.

“Additionally, we are now initiating the process to explore the sale of GreenSky,” Solomon said. 

Solomon described the fintech as “a good business” that is “performing well.” 

"Given our current strategic priorities, however, we may not be the best long-term holder of this business," he said.

The decision to sell GreenSky follows a major reorganization the bank underwent in October, when it folded its expanded asset management and private wealth businesses into one unit.

As part of the reshuffle, aimed at lowering customer acquisition costs, Goldman divided its consumer platform Marcus into two groups. 

The platform’s consumer-focused operations were moved to Goldman’s asset- and wealth-management unit, while a subset of Marcus’ business that deals with corporate clients became a stand-alone entity called Platform Solutions. GreenSky is currently housed there.

Meanwhile, Goldman appears content to invest in reaching the consumer market indirectly, via its Apple partnership. 

In a tie-up that further deepens the bank’s relationship with the tech giant, the firms launched a high-yield savings account Monday for Apple Card users.

The account offers an annual percentage yield of 4.15%, with no fees attached, no minimum deposit and no balance requirement, Apple said.