Goldman Sachs joins Amazon in squeeze on small lenders
Focus is on borrowers who struggle to get a traditional business loan. Banks in the sector are getting nervous
Across sectors ranging from groceries to healthcare, a single phrase suffices to prompt wild-eyed hyperventilation among incumbents: “Amazon’s coming to get us.”
Imagine the double dismay of the concerned small lenders of America on hearing: “Amazon AND Goldman Sachs are coming to get us.”
The pair are planning to expand the e-commerce group’s lending to US small businesses. Without physical branches, Goldman needs other ways to find customers for its fast-growing retail bank. Amazon’s millions of third-party sellers seem ripe for plucking. Vendor sales data could be a gauge of creditworthiness as useful as traditional credit scores...