Goldman Sachs is considering divorcing GreenSky 😳; The landmark EU crypto regulation has officially been passed 🇪🇺; FTX + Tribe Capital = FTX 2.0 👀

FinTech is Eating the World, 20 April

Hey Everyone,

Good morning! Due to work, yesterday’s issue is coming late but it’s definitely worth the wait! 👏 On today’s radar we have Goldman Sachs, which is considering divorcing GreenSky (it’s about Goldman - not GreenSky here), the landmark EU crypto regulation that has officially been passed (& why it’s BIG), and FTX + Tribe Capital = FTX 2.0 (this is sci-fi!). Let’s jump straight into the interesting stuff 🌶

Goldman Sachs is considering divorcing GreenSky 😳

The news 🗞 Banking heavyweight Goldman Sachs GS 0.00%↑ is considering selling its BNPL home improvement lending business, GreenSky, for $2.1 billion, the Wall Street Journal reported.

We must remember that the bank acquired GreenSky for a whopping $2.24 billion just in September 2021 to integrate the platform's capabilities into its Marcus banking app.

More on this 👉 GreenSky is home-focused FinTech - it facilitates BNPL loans up to $100,000 for home improvement projects.

What’s interesting is that it does a hard credit pull before approval and offers no interest if the balance is repaid in the promotional period. In terms of the numbers, circa 4 million consumers have financed more than $30 billion using the platform since it launched. That’s not bad at all!

So why is GS selling it then? 🤔 Well, Goldman has been pulling back on its consumer product offerings across the board, including Marcus, its retail banking biz.

Also, we must remember that back in February, GS halted its pursuit of new credit card programs and abandoned plans for a branded consumer credit card. If that wouldn’t be enough, the bank reported a $3 billion loss over nearly three years from the unit that includes GreenSky and other transaction banking, credit card, and fintech businesses. Ouch 😬

ICYMI: RIP Goldman Sachs (Marcus)🪦

So, it’s not about GreenSky - it’s about Goldman Sachs. In fact, GreenSky is a very attractive purchase that should be scooped up pretty fast. Here’s more on that + the takeaway: