The retailer intends to expand the list of its financial services
The largest American retailer Walmart will create its own fintech startup led by former top managers of Goldman Sachs. According to The Wall Street Journal (WSJ), the startup will become a joint venture with venture capital fund Ribbit Capital, but Walmart will be the main owner.
The purchase of a neobank startup is considered as one of the options, however, the enterprise will not receive a banking license. The startup will be led by Omer Ismail, former head and top manager of Goldman Sachs’ consumer lending division, and David Stark. They officially started working in August. In addition, the former head of Apple and Affirm Holdings, Chris Foth, participated in the development of the strategy.
Walmart has been trying to grow its financial services business for decades, but that business is still a small part of the company’s annual revenue. Chief Financial Officer Brett Biggs confirmed that the company plans to expand its range of financial services. “Everything we will do will be aimed at expanding what we are already doing. The wider adoption of Walmart Pay is definitely something that fits into the ecosystem we are trying to build,” he said.