The news: Goldman Sachs is considering selling or restructuring part of its consumer business as it recovers from the expensive, loss-generating digital bank venture Marcus, per Business Insider.
Mixed signals: CEO David Solomon admitted the bank’s attempt to attract main street consumers didn’t go as planned at the bank’s 2023 Investor Day.
Strategic options: Goldman has a few courses of action it could take, according to industry analysts.
Moving forward: If the bank decides to continue its consumer-facing journey, it will face a few hurdles.
One bright spot in Goldman’s consumer business is deposits. Total consumer deposits topped $110 billion at the end of 2022. But to stay relevant as interest rates remain elevated, the bank will need to offer competitive savings rates to keep deposits coming in.
The bottom line: Whatever Goldman does with its consumer unit, it will need to answer to its investors and shareholders. They’ve questioned Marcus’ viability for months as losses mounted and the bank’s share price fell. But even after the digital bank’s major reorganization at the end of last year, Solomon still seems unwilling to admit defeat.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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