Goldman Sachs Group is weighing the acquisition of the credit card business of vehicle manufacturer General Motors as it intends to bolster its consumer banking business, the Wall Street Journal (WSJ) reported.
Currently, the bank has very little presence in the consumer banking industry, unlike JPMorgan and Citigroup.
Goldman Sachs CEO David Solomon said that the investment bank is looking to strengthen its consumer banking business, the report added.
The private bank has already been offering personal loans and savings accounts to customers, through its digital banking platform Marcus, which launched in 2016.
As part of its consumer banking push, last year, the lender also rolled out a credit card in partnership with technology giant Apple.
The credit card is synced with the Apple Wallet on iPhones. The card can be used to purchase Apple products at a discount.
Apart from Goldman Sachs, UK lender Barclays is also looking to buy the automaker’s credit card unit.
General Motors’ credit card arm has nearly $3bn in outstanding balances, the WSJ report added.
Goldman and Barclays, in their pitches to General Motors, have pushed the idea of cars as e-commerce portals.
General Motors enables drivers to order food, locate fuel pumps, or book hotel rooms through a dashboard screen installed in its cars.
The cars are equipped with in-dash e-commerce technology, which eliminates the need for using smartphones while driving.
WSJ said that a decision is anticipated in the next few weeks.