Goldman to strike a deal with Amazon to offer loans to small businesses

Goldman Sachs struck a deal with Amazon to offer small business loans to its US customers as the Wall Street Bank is turning to big tech companies to extend its push on to the high street. Goldman has begun building technology to facilitate loan offers to small and medium-sized companies over the online retailers’ landing platform and could start as early as March 2020.

David Solomon, Goldman Sachs’s CEO last week told shareholders it would boost returns by generating revenues from sources such as consumer banking and wealth management.

Jeff Bezos’s idea to turn Amazon’s online bookseller by building businesses that sell petabytes if cloud computing space with state of the art warehouse facilities into an infrastructure provider that profits form a growing online trade by charging for a host of commercial services offered to other companies.

It had small business loans of over $863m on its balance sheet at the end of 2019.

Goldman Sachs’s agreement with Amazon would follow last year’s credit card partnership between Goldman and Apple, which featured Banks’s branding on the physical card and gave Goldman a direct channel to Apple’s 100m plus subscribers.

The bank’s total asset of $993bn accounts for only  3 per cent for the new ventures.