The cars pass a Walmart store in Washington, DC, on August 18, 2020.
Nicholas Kamm | AFP | Getty Images
Walmart took two veteran bankers from Goldman Sachs to help lead its new fintech start-up, while the company looks beyond retail to generate revenue.
Omer Ismail, who heads Goldman’s consumer bank, and David Stark, another Goldman banker, are going to the retailer. A Goldman Sachs spokesman confirmed his departure. The news was first released by Bloomberg.
Walmart announced in January that it is creating a new company to develop exclusive and affordable financial products for customers and employees. It has partnered with Ribbit Capital, a venture capital firm, but will have a majority stake in the start-up. Walmart did not disclose the name of the company or when the services would be available. Walmart executives, including CFO Brett Biggs and Walmart US CEO John Furner, will serve on the start-up board.
Walmart said it could acquire or partner with other fintech companies as part of the venture.
The discount company declined to share details beyond what the company had previously announced.
With the hires, Walmart is investing money and muscle in its financial services ambitions. The company also reinforces its strategy for the coming years. On a recent investor day, CEO Doug McMillon said the world’s largest retailer will use its size and scale to generate revenue in other areas, from opening health clinics to transforming consumer data into targeted ads. He said that Walmart will deepen customer loyalty with a growing ecosystem of products and its subscription service, Walmart +. The company plans to step up investments to make this happen, bringing it to about $ 14 billion this year, compared to the company’s typical annual fee of $ 10 billion to $ 11 billion.
Walmart already offers some financial services, such as a prepaid debit card that customers can charge with cash and use to make purchases. The card is also an alternative for people who may have a challenging credit history, with features like no overdraft or monthly fees and no minimum balance required.
The company’s stock rose nearly 23% from last year, bringing its market value to more than $ 374 billion.