Goldman Sachs explores selling its fintech unit GreenSky

Goldman Sachs has begun the process to explore the sale of its fintech unit, GreenSky, according to David Solomon, Chief Executive Officer of the investment banking giant on April 18.

Solomon reportedly said GreenSky's performance remains high, but Goldman is not best suited for long-term leadership of the company.

"We believe GreenSky is a good business and is performing well with first quarter originations in our core home improvement loans, up over 25 percent year-over-year and a weighted FICO on total originations of over 780," Reuters quoted him as saying.

"Given our current strategic priorities, however, we may not be the best long-term holder of this business," Solomon added.

Goldman Sachs did not issue an official statement when the preliminary reports were released.

As part of Goldman's Platform Solutions unit, GreenSky joins the firm's credit-card partnerships, like Goldman's Apple Card, as well as its transaction banking operations.

GreenSky was acquired by Goldman for about $2.24 billion in late 2021, adding it to its Marcus consumer banking platform.

As Bloomberg reported in January, the division's $1 billion pretax loss in 2021 was mostly due to the Apple Card, while its $2 billion pretax loss in 2022 was mainly due to the Apple card and the instalment-lending platform, GreenSky.