Walmart is enlisting the help of two Goldman Sachs executives to help roll out a new FinTech startup as the retail giant gets into banking, Bloomberg reports.
The executives are Omer Ismail and David Stark, the report says.
Ismail is the head of Goldman’s commercial bank and is making a “surprise exit” to the FinTech.
And Stark, according to the release, is one of Ismail’s top lieutenants at Goldman and will be joining him.
In response, Goldman said it had “serious momentum and a deep and growing bench of talent,” wishing the two former employees well. But the departures are a setback for the bank, Bloomberg writes, as it had just entrusted both men with bigger roles at the company. Ismail had formally taken on the control of the consumer bank at the beginning of the year, and had just helped to enact the strategy for Marcus — the bank’s biggest project in 30 years.
Meanwhile, Stark had just taken part in Goldman’s work with Apple on credit cards, and had been named the company’s head of large partnerships just weeks ago.
Walmart’s tactic of taking team members away from Goldman Sachs shows its commitment to entering into the world of banking, Bloomberg writes, demonstrating that the retail giant is intent on getting involved in the financial activities of its customers. The company is working with Ribbit, an investment firm, on the project, according to Bloomberg.
Walmart CEO Doug McMillon said recently that the company was working toward becoming what PYMNTS termed a “super app.” McMillon said his goal was to move Walmart into being the “primary destination” for its customers, becoming an ecosystem encompassing both physical and digital needs, as a way to combat the encroachment of Amazon’s multitude of services in recent years.
Walmart is expanding through partnerships with Shopify for a third-party marketplace, along with its commitment to health care with the Walmart Health centers. It’s also working with eCommerce, logistics, supply chain, inventory, Buy Now Pay Later services, and other programs.
Check out our other articles here.