In March $2022,$ Goldman Sachs $($a traditional US bank$)$ finalized its $$2\mathrm{.}2$ billion acquisition of the massive Buy Now Pay Later $($BNPL$)$ online loan platform Greensky $($similar to Afterpay in Australia$).$ In the press release announcing the acquisition, Goldman CEO David Solomon articulated the value of the deal: $$We have been clear in our aspiration to become the consumer banking platform of the future, and the acquisition of GreenSky advances this goal.$$

$[5+5=10$ marks$]$

Why do you think a traditional bank like Goldman Sachs acquired a FinTech startup at such a high market valuation? How would Goldman Sachs products be different to Greensky and why it would be beneficial to the bank?

What type of risk do Goldman Sachs aim to mitigate through this acquisition and why?