I’ve worked in consumer lending since I graduated college.\u00a0 Form the dusty streets of Dar es Salaam to the mountains of Cape Town, I’ve witnessed most of the spectrum in consumer lending.\u00a0 When I started in microfinance, it was a people-intensive environment.\u00a0 We went on collection runs to the market to find our defaulters.\u00a0 Our loan officers had a connection with every person that took credit from us.\u00a0 Now, I’m on the opposite side of the spectrum.\u00a0 We don’t have any loan officers.\u00a0 The only connection we have with our customers is through a phone.\u00a0 Our collections are decided by algorithms over a tech platform.\u00a0 I think\u00a0I have a keen appreciation of the advantages and disadvantages of both sides, and I’m always following the industry.\u00a0 So when Goldman Sachs, a company that has shunned consumer banking since inception, decides to get in the game, I pay attention.\u00a0 And it turns out the way they are going to play the game is firmly on one side of the spectrum.\u00a0 All algorithms, all math, big scale.\u00a0 Here’s a video of their CEO explaining how this happened.\u00a0 I’ve tried to link it to the time he starts talking about consumer lending, but if it doesn’t work, that part starts at 18:17<\/p>\n