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Published on : Apr 16, 2018

Financial services companies and banks, including investment banking, are increasingly harping on consumer-centric approaches to personal finance to attract consumers. Machine learning technologies, powered by apps, are occupying a key role in such offerings in the area of retail banking. To this end, several players mull entering into acquisitions to leverage the potential of these technologies. Goldman Sachs Group Inc., through its subsidiary bank Goldman Sachs Bank USA, has on April 13 completed the acquisition of Clarity Money, a personal-finance app. The acquisition by Goldman Sachs will enable it to potentially support its online lending business, Marcus, which is key to creating leading platform for tens of thousands of its customers.

Of note, Marcus was launched by the U.S.-based investment bank and financial services giant in October 2016. The primary aim was to help credit card borrowers to consolidate the variety of loans they undertake under a single debt, with less interest rate. The loans offered are in the range of $3,500 to $40,000.

Free to use Personal App to pave way for Smarter and Consumer-Centric Financial Decision

The app Clarity Money that can be accessed without any extra cost will help the customers of the bank to better manage their personal finances, paving way for smarter and consumer-centric financial decision, opines Goldman Sachs. The products and services under Marcus lays the groundwork for that and Clarity Money was rebranded as Marcus in due course of time.

Soros Fund Management, LLC and the venture capital arm of Citigroup Inc. were supporters of the deal. As disclosed by Goldman Sachs, Marcus will rope in the technical, engineering, and management expertise of Clarity Money, with the latter’s CEO and the Founder joining the company as a partner in the senior management. The acquisition, believes the bank, will lead to favorable shifts in the area of personal finances for the consumers, the initiatives Marcus has been typically engaged with for long.