Cars will drive past a Walmart store in Washington, DC on August 18, 2020.
Nicholas Kamm | AFP | Getty Images
Walmart has hired two veteran Goldman Sachs bankers to lead the new fintech start-up as the company looks beyond retail to generate revenue.
Omer Ismail, who runs Goldman’s consumer bank, and David Stark, another Goldman banker, leave for the retailer. A Goldman Sachs spokesperson confirmed their departure. The news was first reported by Bloomberg.
Walmart announced in January that it would create a new company to develop unique, affordable financial products for customers and employees. It is partnered with Ribbit Capital, a venture capital firm, but will have a majority stake in the start-up. Walmart did not share the company’s name or when services would be available. Walmart executives, including CFO Brett Biggs and John Furner, CEO of Walmart US, will serve on the start-up’s board.
Walmart said it could acquire or partner up with other fintech companies as part of the venture.
The discounter declined to share details outside of what the company had previously announced.
With the recruitments, Walmart is putting money and strength behind its financial services ambitions. The company also underlines 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 turning consumer data into targeted advertising. He said Walmart will deepen customer loyalty with a growing ecosystem of products and its subscription service, Walmart +. It plans to ramp up investment to make that happen, pushing them to about $ 14 billion this year, compared to the company’s typical annual rate of $ 10 billion to $ 11 billion.
Walmart already offers some financial services, such as a prepaid debit card that customers can top up with cash and use for purchases. The card is also an alternative for those with a difficult credit history, with features such as no overdraft or monthly fees and no minimum balance required.
The company’s stock is up nearly 23% over the past year, bringing its market value to more than $ 374 billion.