Why Banks Should Pay Attention to the New Amazon and Goldman Sachs Partnership

Ron Shevlin takes a deep dive into the new small business lending partnership announced last week between Amazon and Goldman Sachs; Amazon merchants will now be able to access a credit line from Goldman Sachs; one interesting point that Shevlin notes is that Goldman Sachs will be able to cherry pick the businesses on Amazon who will be eligible to receive this deal, meaning their cost of customer acquisition will be close to zero; he argues that banks should be paying attention to this partnership but most will likely ignore the four major issues that this deal highlights: 1) banks should diversify their loan portfolios, 2) Goldman Sachs will be creating a completely digital and real time underwriting process, 3) this is another example of embedded finance, a new trend gaining momentum, 4) banks should be doing more for small business. Forbes

Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech.

LendIt Fintech conducts three conferences a year for the leading fintech markets of the USA, Europe, and Latin America. LendIt also provides cutting-edge content all year long via audio, video, and written channels.

Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments