Skip to content
Subscriber Only

Goldman Sachs Faces Doubts About Loss Rates at New Online Lender

  • Marcus is targeting consumers as many brace for a downturn
  • Bank aims to produce $1 billion of revenue growth from push

As Goldman Sachs Group Inc. lends more money to Main Street, one question won’t go away: How many borrowers will pay them back?

Goldman’s fledgling online lender Marcus, named after the company’s founder, is targeting consumers at a time when many are bracing for a downturn after eight years of economic expansion. A recent example it gave suggests the firm expects loan losses to be lower than what some rivals are seeing, and half of what many credit-card lenders experienced the last time the economy went south.