GS - 3 Reasons Goldman Sachs Is Buying GreenSky
Recently, the investment banking giant Goldman Sachs (NYSE: GS) announced its intention to purchase the point-of-sale and buy-now-pay-later fintech GreenSky (NASDAQ: GSKY) in an all-stock transaction valued at roughly $2.2 billion. GreenSky is a large facilitator of home improvement and elective surgery loans, and allows customers to make purchases and pay them off with multiple payments over a set amount of time.
GreenSky currently services a $9 billion loan portfolio, and since launching, has served roughly 4 million consumers who have taken out roughly $30 billion of loans. Here are three reasons Goldman is dipping into the buy-now-pay-later space and purchasing GreenSky.
For the past few years, Goldman has strived to grow its consumer banking franchise to generate more steady earnings, which can be volatile in the investment banking business. A big part of this strategy has been the bank's launch of its digital bank, Marcus, which offers high-yield savings accounts, loans, and credit cards, and plans to eventually offer checking accounts.
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3 Reasons Goldman Sachs Is Buying GreenSky