Marcus by GS has been one of the most famous and successful responses of a large financial institution to the rise of online lending platforms, and for good reason. In the presentation to Credit Suisse published this Tuesday, Marcus was reported to have lent out $2.3 billion as of December 2017, which is $300 million more than the mid-November number of $2 billion.
More importantly, Marcus has all the chances in the world to leave any startup competition in the dust with access to $17 billion in deposits as of December 2017. That’s $8 billion more that it had in April 2016.
Pick #1. Marcus by Goldman Sachs Lent Out $2.3 Billion as of December 2017 and Has Access to $17 billion in Deposits
Source: Goldman Sachs Presentation to Credit Suisse Financial Services Conference
Read more in the Goldman Sachs Presentation to Credit Suisse Financial Services Conference by Lloyd C. Blankfein, Chairman & CEO of Goldman Sachs.
Pick #2. Microsoft to Implement Blockchain-Based ID System
Microsoft revealed its plans to integrate blockchain-based decentralized IDs (DIDs) into its Microsoft Authenticator app. Microsoft is looking to provide a new model of digital identity that would not be controlled by any centralized institution and would guarantee fully private data storage, enabling the individual to have full control of “all elements of [their] digital identity.”
“Microsoft’s cloud identity systems already empower thousands of developers, organizations and billions of people to work, play, and achieve more. And yet, there is so much more we can do to empower everyone. We aspire to a world where the billions of people living today with no reliable ID can finally realize the dreams we all share like educating our children, improving our quality of life, or starting a business.
“To achieve this vision, we believe it is essential for individuals to own and control all elements of their digital identity. Rather than grant broad consent to countless apps and services, and have their identity data spread across numerous providers, individuals need a secure encrypted digital hub where they can store their identity data and easily control access to it.
“Each of us needs a digital identity we own, one which securely and privately stores all elements of our digital identity. This self-owned identity must be easy to use and give us complete control over how our identity data is accessed and used.” – Alex Simons, Director of Program Management, Microsoft Identity Division
Pick #3. Ripple CEO Brad Garlinghouse Talks Bitcoin, Banks, and Payments
Garlinghouse believes the best way to bring cryptocurrency to the mainstream is to “work within the system” as opposed to using cryptocurrency to circumvent government regulation and financial institutions.
“While contrarian and unpopular in the crypto space, in retrospect, it’s very smart,” Garlinghouse said.
Garlinghouse compared the proliferation of crytocurrencies like XRP and Bitcoin to the advent of different kinds of databases, rather than “one database to rule them all.” Most of these digital currencies will die out, he says, because it’s unclear what problem they solve.
Pick #4. Amazon Has Partnered with Bank of America for Its Lending Program: Sources
In his shareholder letter two years ago, Amazon CEO Jeff Bezos said he was looking to team up with banks that could help his company expand its lending program for small businesses that sell on Amazon’s websites.
CNBC has learned that Amazon Lending, which launched in 2011, ultimately found a partner in Bank of America Merrill Lynch. Partnering with Bank of America allows Amazon to reduce its risk and access capital specifically to provide credit to more merchants so they can acquire inventory.
Amazon Lending is an invitation-only program that makes loans of $1,000 to $750,000, with terms of up to a year, for companies that may have difficulty landing traditional business loans. In June 2017, Amazon said it issued more than $1 billion in loans during the previous 12-month period, compared to $1.5 billion in combined loans for the four years prior to that.