American banking giant Goldman Sachs is planning to venture into consumer lending business by launching a digital banking division.
The new consumer lending unit will offer loans to small businesses and ordinary American consumers, broadening its clientele from its blue-chip base.
The new unit will function as a virtual bank, catering to customers through a website or a mobile app. The bank hopes to offer its first loan in 2016.
In an internal memo reviewed by AFP, the bank said: "The traditional means by which financial services are delivered to consumers and small businesses is being fundamentally re-shaped by advances in technology, maturity of digital channels, use of data and analytics and a focus on customer experience.
"Today, we see an opportunity to leverage our competencies in technology and risk management to capture this opportunity at accretive returns and without the burdens of legacy costs and fixed infrastructure."