Goldman Sachs may hand over GM card to Barclays

Goldman Sachs The company is reportedly exiting the General Motors credit card business.

The banking giant is working with barclays bank transfer Issuance of cardsThis is the latest development in its long-term project to move away from consumer loans, the Wall Street Journal (WSJ) reported on Tuesday (April 30).

The report quoted people familiar with the matter as saying that Barclays is the top contender to take over General Motors Credit Card, which has an outstanding balance of about $2 billion, and that a deal may be reached this summer.

US Bancorp and Bread Financial were also considered but dropped, the report noted. A Goldman Sachs spokesman declined to comment when reached by PYMNTS.

The Wall Street Journal previously reported on the bank's credit card partnership with Apple is also being weakened.

Goldman Sachs has been exiting consumer banking since 2022, selling its Consumer lending platform green sky Sold to a consortium of buyers last year.

Last week, the bank reached an agreement with an independent digital investment adviser improvethat is, obtain Digital investment account Marcus Invest, a subsidiary of Goldman Sachs, provides consumers with customized investment portfolios.

Goldman Sachs Launching Marcus Investments February 2021, for retail investors.

While Goldman Sachs typically works with investors with more than $10 million in assets at launch, the minimum account balance for Marcus Invest is $1,000.

However, on an earnings call earlier this month, Goldman Sachs management noted that it remains committed to transaction bankingthe segment's revenue increased to $80 million from $74 million last year.

“This is a mid- to long-term project that we will pursue,” Chief Executive David Solomon said on the call, adding, “It's small. But I think our focus is right.”

Meanwhile, research from PYMNTS Intelligence finds that more consumers prefer to get credit cards from credit unions (CUs) or community banks rather than national banks.

Research shows that about 68% of consumers surveyed last year relied on national banks to issue credit cards, down from 76% in 2020. “Credit unions and community banks gain momentum in credit card issuance,” Partnered with Elan Credit Card.

The study, based on a survey of more than 2,000 consumers, found that if given a choice, 24% would choose a more local option, such as a credit union or community bank.

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