Goldman Sachs, Barclays Reportedly Compete to Acquire General Motors' Credit Card Business

By Jace Dela Cruz

Apr 29, 2024 02:44 AM EDT

Goldman Sachs and Barclays are both vying to acquire General Motors' credit card business, unnamed sources familiar with the matter told the Wall Street Journal.

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NEW YORK, NEW YORK - AUGUST 25: The Goldman Sachs logo is seen at the New York Stock Exchange during morning trading on August 25, 2023 in New York City.
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Goldman Sachs, Barclays Bid for General Motors' Credit Card Business

The automaker's credit card unit, which carries approximately $3 billion in outstanding balances, has attracted interest from a handful of bidders, including Goldman Sachs and Barclays. 

A decision on the potential sale is anticipated within the next few weeks. For Goldman Sachs, pursuing General Motors' credit card business is part of a broader strategy to bolster its consumer banking division.

Goldman Sachs has been leveraging its digital banking platform, Marcus, which was introduced in 2016 and has seen rapid growth. Marcus offers consumers personal loans and savings accounts. 

Goldman also partnered with Apple last year to introduce a credit card integrated with Apple Wallet and offer discounts on Apple products.

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E-Commerce Platforms

The pitches from Goldman Sachs and Barclays to General Motors have highlighted the concept of cars serving as e-commerce platforms. It also underscores the potential for innovative partnerships and consumer engagement within the automotive industry.

If successful, acquiring GM's credit card business would expand Goldman Sachs' efforts to diversify and expand its consumer banking operations. However, it must be noted that neither company has yet to provide official comments on the matter.

READ MORE: Goldman Sachs Says 'The Great Disinflation' Is Under Way, Setting the Stage for 5 Eventual Fed Rate Cuts

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