The personal lending space in the United States, conservatively estimated to be around $3 trillion in 2016, is seeing continued disruption. One of the latest innovative offerings in the lending space comes from a traditional investment bank: Goldman Sachs has looked to expand its presence in the retail banking space with a digital offering for the millennials. Marcus by Goldman Sachs is the investment firm’s latest foray – a cloud-based, fully online consumer lending business.

Marcus by Goldman Sachs provides products to help people manage their finances. The first product from Marcus is a fixed-rate, no-fee unsecured personal loan that enables customers to tailor their monthly payment options to fit their schedule and budget. The Finacle solution will help manage the complete consumer loan-servicing life cycle, while allowing Marcus to achieve the necessary scale as well as providing enhanced functionality, business confidence and security to its consumers.

Boe Hartman, Chief Technology Officer (Digital Finance Technology) at Marcus, commented, “With the successful deployment of the Finacle Core Banking Solution we have the agility to respond to customer needs, the scalability to adapt with market requirements whilst providing the superior customer experience required in today’s competitive digital age.”

The entire implementation program was completed in just eight months, leveraging the agile implementation framework and the pre-configured US-compliant Finacle solution. The solution provides out-of-the-box compliance for federal and state regulations. Marcus is now able to deliver extensive self-service capabilities on digital channels to design truly personalized products. The system will give end-consumers the flexibility to choose lending terms such as repayment amount and tenure.

In today’s digital world, traditional banks should take a leaf out of Goldman Sachs’ book in identifying niche customer requirements, and develop innovative digital solutions that’ll help them gain the first mover advantage.

Read more about Marcus and the Finacle core here.