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Goldman Sachs will split its digital bank offering Marcus into a broader wealth and wealth management division as the company shifts focus away from its retail banking offering.
Goldman Sachs CEO David Solomon
Marcus has $110 billion worth of digital deposits and about 13 million customers, but Goldman’s consumer business could lose about $1.2 billion this year.
As part of a broader reorganization, Goldman will reduce its operations to include three divisions: Trading and Investment Banking, Wealth and Wealth Management, and other partnerships, including Transaction Banking and partnerships with Apple. We are considering concentrating on the third division.
On a conference call outlining the bank’s third quarter 2022 results, Goldman Sachs Chairman and CEO David Solomon said structuring the company in this way will help investors “see how they see their customer set. It will be easier for us to understand and see who our customers are and how they are performing against our set of customers.
This is exactly what big business is about banking and markets and wealth and wealth management, said Solomon, along with a reorganization that reflected the lessons learned from launching a full-fledged digital bank in 2016. I am adding.
Looking at the deposit platform that has been built, what we have learned is that its ability to scale and attract customers means we need to focus our D2C business in a more direct way. I think.
We focus on that by aligning it with the wealth business. We have access to millions of people and it aligns with our wealth business so this very We can offer our customers interesting digital businesses, says Solomon.
in an interview with CNBCSolomon gave further insight into the decision to reprioritize.
The concept of broadening our consumer footprint has not really played to our strengths. Our ability to add and work with it is really our strength,” says Solomon.
Solomon is reluctant as to whether the Marcus brand itself will survive.
“We’re moving towards really expanding Goldman Sachs,” Solomon said, noting that Marcus has a brand identity and banks will continue to work on deposit platforms, but “we’re going to offer these banks We intend to continue “services adjacent to our wealth platform”.
