Bar­clays vies with Gold­man for $3bn GM credit card arm

The Daily Telegraph - Business - - Business - By Lucy Bur­ton

BAR­CLAYS is locked in a bid­ding war with Gold­man Sachs for the $3bn (£2.3bn) credit card arm of US car­maker Gen­eral Mo­tors, in­sid­ers have said.

The pair are chas­ing the busi­ness as they eye a fu­ture where drivers or­der cof­fee and take­aways from their cars, sources told The Wall Street Jour­nal.

Win­ning the bat­tle would be a sig­nif­i­cant vic­tory for Bar­clays – whose boss Jes Sta­ley is seek­ing to ce­ment its place as a transat­lantic bank able to bridge the gap be­tween Amer­ica and Europe – and a rare ex­am­ple of a UK fi­nance firm buy­ing a US op­er­a­tion.

A de­ci­sion is ex­pected in the com­ing weeks.

For Wall Street gi­ant Gold­man, which teamed up with Ama­zon in June, se­cur­ing a deal with GM would push it fur­ther into con­sumer bank­ing after years of try­ing to di­ver­sify away from its core in­vest­ment bank­ing busi­ness.

Last year the firm launched its first credit card after form­ing a part­ner­ship with Ap­ple, a ven­ture that re­placed a long-stand­ing re­wards card part­ner­ship be­tween Ap­ple and Bar­clays.

A se­ries of viral so­cial me­dia posts pub­lished in 2019 claimed that fe­male

Ap­ple Card cus­tomers were of­fered smaller credit lim­its than men.

Gold­man launched its re­tail bank­ing brand Mar­cus in 2016, of­fer­ing on­line sav­ings ac­counts and per­sonal loans.

Bosses have set them­selves a tar­get of gen­er­at­ing $5bn of rev­enue from new sources in a bid to boost prof­its.

Named after the bank’s founder Mar­cus Gold­man, the brand launched in the UK in 2018 and signed up 50,000 cus­tomers in its first fort­night with a then-mar­ket lead­ing sav­ings rate.

If the US bank se­cured a deal with GM it would likely pay a small pre­mium to buy its credit card port­fo­lio in the hope of mak­ing up the money by cross-sell­ing new card­hold­ers other prod­ucts, The Wall Street Jour­nal said.

Spokes­men for Bar­clays and Gold­man de­clined to com­ment and Gen­eral Mo­tors did not re­spond.

Jes Sta­ley, the Bar­clays chief ex­ec­u­tive, is seek­ing to ce­ment its place as a transat­lantic bank

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