Goldman Sachs launches new small loan service called Marcus

Marcus specialises in small consumer loans

Marcus is expected to be unveiled formally in October, offering relatively small consumers loans to individuals (AP)

Goldman Sachs, the US banking giant, has settled on a surprisingly informal name for its new online lending business: Marcus.

The full name – Marcus by Goldman Sachs – is the result of extensive market research and is meant to establish a sense of familiarity with the brand. It is a homage to Marcus Goldman, a German immigrant who founded the firm in 1869.

Goldman Sachs wanted the name to put the light on its digital offering by making it sound more like trendy tech start-up rather than a Wall Street giant.

Marcus was reportedly first referred to internally as Mosaic and has been operating with a staff of around 100 people.

It is expected to be unveiled formally in October, offering relatively small consumer loans to individuals, a business the bank has previously shied away from.

Goldman has historically been known for catering to the super-rich, wealthy institutions and corporate giants. But volatile markets and tighter regulations introduced after the financial crisis have pushed the bank to look for other sources of revenues.

In April, Goldman launched GS Bank a separate online deposit-taking platform that welcomed customers making deposits of as little as $1, with a 1.05 interest on their money.

Within the past year seveal scandals have tarnished the bank's reputation. Earlier this summer, Goldman faced criticism over its connection to 1MDB a Malaysian sovereign wealth fund at the centre of a corruption probe. The fund is under investigation over US government allegations that billions of dollars were diverted for the personal use of officials.

Edwin Chin, a former senior trader at Goldman Sachs, this week agreed to pay a fine of $400,000 and be barred from the securities business for at least two years for misleading customers into to paying more for residential mortgage-backed bonds.