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Goldman Adds GM as 2nd Major Co-Branded Card

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Goldman Sachs will issue a new credit card with General Motors, according to a Bloomberg report on Monday (January 10).

The agreement is Goldman’s second largest joint deal, having teamed up with Apple in 2019 for a credit card. Banks usually use these types of deals to attract clients of other companies as borrowers.

Goldman has been the front-runner for GM’s partnership since 2020. The bank will take over the card business from Capital One Financial, which has been offloading some smaller portfolios — and while Goldman’s deal is moderate, it sees getting more retail banking. The agreement includes about 3 million GM credit card holders, whose accounts were transferred to Goldman this week, according to Reuters.

“The average person in the United States spends an hour in their car,” Stephanie Cohen, who helps drive consumer and wealth business at Goldman, told Bloomberg. “This is just something they deal with all the time. People want to experience financial services and ecosystems that they love and trust.”

Goldman CEO David Solomon recently said that the bank is looking into a “property card in development,” which would be similar to other products from the consumer banking giants. The company also agreed to buy GreenSky, a company that offers payment plans for customers with home improvement or healthcare needs.

In addition, the bank’s consumer line, marketed as Marcus, works with Walmart and other companies to offer small business loans. It also funds vacation purchases with JetBlue.

Goldman analysts said the current pandemic could have negative effects on the volume of hospital procedures and the recovery in MedTech’s procedures.

Related: Goldman: Increased spread of coronavirus could reduce demand in 2022 for elective medical procedures

According to reports, there may be another wave after Omicron. However, analysts said that without a solid timetable for things to return to “normal” the disease could reach an “endemic” state and that could help some commercial companies working with hospitals.

Another return could also hurt the nursing shortage more, as well as the volume of procedures.

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New PYMNTS data: Documenting Identities in the Digital Economy – December 2021

on:More than half of American consumers believe biometric authentication methods are faster, more convenient, and trustworthy than passwords or PINs – so why do less than 10% use them? PYMNTS, in collaboration with Mitek, surveyed more than 2,200 consumers to better define this perception versus the usage gap and identify ways companies can boost usage.

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