Goldman Sachs, a US-based bank with its own credit division that provides auto financing and leasing, is currently in discussions with online retail giant Amazon that would allow the bank to start offering loans to SMEs within the United States.
Goldman is the US’s fifth-largest bank by total assets (with $925bn; £710bn) in 2019, according to S&P Global Marketplace.
Meanwhile, the US represents the largest leasing market in the world, especially since stock market bulls have dominated investor sentiment in the US over the last decade.
The US was responsible for $410.35 billion in leasing volume, according to the White Clarke Group Leasing Report for 2019. North America recorded new business volumes of $445.9 billion, the WCG report said.
The deal with Goldman Sachs would target loans to SMEs across Amazon’s lending platform, the FT report said. Goldman is currently in the process of shifting its business model away from being purely a trading and investment bank to offering a wider array of financial services.
Meanwhile, Amazon is also looking to diversify its online marketplace and cloud computing business to charging its customers “for a host of commercial services offered to other companies,” the FT reported.
Goldman Sachs is also understood to be pursuing “banking-as-a-service” as a new line of business, which would see third parties ‘white label’ Goldman Sachs built products and financial services.
If Goldman Sachs is looking to develop its SME and lender finance offerings, there is evidence to suggest this might involve tie-ups in with auto finance companies down the road, both in the US and China.
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