Goldman Sachs are closing in to sign a new deal with Amazon that will allow them to offer loans to retailers through Amazon’s lending platform as the talks between the two companies reportedly reach the advanced stages. According to a report published by Financial Times on Monday, Goldman Sachs has initiated its plans of building technology that can enable them to lend money to small scale businesses via Amazon’s lending platform. The report from Financial Times cited two people who are closely involved and are well informed about the details of the deal.
David Soloman, Goldman Sachs CEO, while speaking at an event last week underlined the company’s idea of offering “banking as a service”, a concept that will see the bank offering commercial loans through digital services by cracking deals with leading names in the industry. If the reports do turn out to be true, Amazon will become the second company after Apple to use Goldman Sachs for providing banking-like services to its customers. None from Amazon or Goldman Sachs came out to comment on the reports. While lending out small business loans does seem to he a major risk for Goldman Sachs, the bank believes that it has plans in place already to afford the risks involved.
Amazon has hit quite a few milestones in the recent past, one of which saw the company reporting a workforce in excess of 500,000 in the United States. The number is three times of what it was just half a decade ago and is 43 per cent more than what it was a year ago. Despite the stock markets stumbling owing to the Corona virus outbreak, Amazon stocks continued to surge up and breached the USD one trillion mark.