Goldman Sachs was earlier this year warned by the Federal Reserve about its partnerships with riskier FinTechs, according to reports.

The Financial Times said that people with knowledge of the talks said that US financial regulators have previous highlighted risk and compliance concerns with the bank related to its FinTech clients.

Two people familiar with the matter told the publication that the Federal Reserve had raised concerns about poor due diligence and monitoring processes when the bank accepted higher risk non-bank customers.

The newspaper revealed that a department in bank's transaction banking business has since halted deals with riskier FinTechs in the market.

FStech has reached out to Goldman Sachs for comment.

The move comes after Goldman Sachs put its FinTech unit GreenSky up for sale following a $470 million loss at the bank on the partial sale of its consumer loan portfolio.

Goldman Sachs acquired GreenSky last March in a takeover deal valued at around $2 billion, with the bank’s chief executive David Solomon stating that it would become a “key component of its offering”.

News of a possible sale followed recent first quarter losses reported by the bank. In the three months to March 31, it recorded a five per cent decline in sales to $12.2 billion, with net earnings falling by 19 per cent to $3.9 billion.

Last month, reports suggested that Goldman Sachs is also considering the sale of its personal finance management business.

The bank bought investment advisory United Capital four years ago for $750 million.

According to reports, the sale is part of a shift away from mass market customers to concentrate on its ultra-rich clients.

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