Goldman Sachs, the banking gold standard for the world's elite, sees a future in less prosperous investors.
A creative strategy taking shape inside the bank calls for it to partner with small brokerages and wealth management firms to lend money to their clients, many of whom have far less wealth than what's in the typical Goldman private bank account.
The idea is for Goldman to reach a big set of borrowers, in the U.S. and possibly abroad, without having to acquire them through a merger or build relationships one by one, people familiar with the initiative said. The plan is still in very early stages and may not be active until next year, the people added.
The strategy is unusual not just for Goldman, but across Wall Street, since most banks simply lend to their own customers. It also carries more risk because it may be harder to vet borrowers or the assets they post as collateral.