Walmart has lured two Goldman Sachs bankers to help run its new, as-of-yet-unnamed fintech venture.
What Happened: Walmart Inc (NYSE: WMT) has hired Goldman Sachs Group Inc‘s (NYSE: GS) consumer banking chief Omer Ismail, along with David Stark, one of his top lieutenants at Goldman, to leads its new fintech startup, Bloomberg has reported, citing people with the knowledge of the matter.
Seeking to forge a path in the financial world, the retail giant in January announced a tie-up with investment firm Ribbit Capital to offer financial services. The startup will be mostly owned by Walmart.
“Our customers have been clear that they want more from us in terms of financial services. This new approach will help us deliver for them in a differentiated way more quickly,” The Wall Street Journal quoted Walmart Chief Executive Doug McMillon as saying earlier this month.
Why It Matters: For Walmart, the move marks a push against Wall Street.
For Goldman, the departure of Ismail and David is a setback and comes as Goldman in recent months has seen a higher-level management shuffle at its consumer business.
Ismail was with Goldman for the last 20 years and headed the Marcus consumer unit. Under his leadership, Marcus has grown into a billion-dollar business in five years.
By the end of 2020, Marcus had $1.2 billion in annual revenue.
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