The beginning: Marcus by Goldman Sachs was launched in 2016 as an opportunity for Goldman to break into consumer banking and provide retail customers with a unique digital banking experience from a trusted name.
This year in review: In 2022, Marcus struggled with leadership, as three different executives successively had headed up the division since 2021. Despite this instability, the bank could tout some impressive wins. But they were quickly overshadowed.
Total overhaul: As the losses mounted and shareholders began to question the viability of the consumer-facing bank, Goldman Sachs was forced to make major changes to the business line. With its Q3 2022 earnings release, Goldman outlined a reorganization that would dismantle Marcus.
Goldman Sachs learned a few tough lessons in its attempt to build an in-house digital “speedboat” to compete with neobank challengers: Much more goes into attaining profitability than just new branding and marketing, and attracting new, lower-income customers outside of its wheelhouse requires a tailored approach to that demographic’s differing needs.
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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