Cars drive past a Walmart store in Washington, DC on August 18, 2020.
Nicholas Kamm | AFP | Getty Images
Walmart has hired two veteran bankers from Goldman Sachs to help lead their new fintech startup as the company looks beyond retail to boost revenue.
Omer Ismail, who heads Goldman’s consumer bank, and David Stark, another Goldman banker, leave for the retailer. A Goldman Sachs spokesman confirmed their departure. The news was first reported by Bloomberg.
Walmart announced in January that it was creating a new company to develop unique, affordable financial products for customers and employees. It has partnered with Ribbit Capital, a venture capital firm, but will hold a majority stake in the startup. Walmart did not share the name of the company or when services would be available. Walmart executives, including CFO Brett Biggs and Walmart CEO John Furner, will sit on the board.
Walmart said it is possible to acquire other fintech companies or collaborate as part of the business.
The discount did not want to share more information than the company had previously announced.
With the hiring staff, Walmart is putting money and muscle behind its ambitions over financial services. The company also emphasizes its strategy for the coming years. At a recent investor day, CEO Doug McMillon said the world’s largest retailer would use its size and scale to increase revenue in other areas, from opening healthcare clinics to converting consumer data into targeted advertising. He said Walmart will worsen customer loyalty with a growing ecosystem of products and its subscription service, Walmart +. It is planned to increase the investments to make this happen, and increase it to about $ 14 billion for this year, compared to the normal annual rate of $ 10 billion to $ 11 billion.
Walmart already offers financial services, such as a prepaid debit card that customers can charge with money and use for purchases. The card is also an alternative for people with a challenging credit history, with features like no overdraft or monthly fees and no required minimum balance.
The company’s shares have risen nearly 23% in the past year, bringing its market value to more than $ 374 billion.