Goldman Sachs plans to offer a new digital wealth product for Main Street — and it's part of a goal to take on wealth management giants


Goldman Sachs has big ambitions for its small-but-growing consumer finance business, Marcus.

It’s a key part of CEO David Solomon’s plans to boost revenue at the bank, and one that could become a $US1 billion revenue opportunity in the next few years.

To supercharge Marcus’ growth, Goldman said on Monday that it’s creating a new unit to house both its digital finance business and its investment management division. The goal is the next step in Goldman’s plan to take the Marcus platform from its consumer banking roots to a more full-service wealth offering for the masses.

“We plan to launch a broader wealth management offering – combining Marcus’ digital capabilities with the more established sales channels and products currently housed within the Investment Management Division,” Goldman said in a memo, which was signed by Solomon, president John Waldron and incoming chief financial officer Stephen Scherr.

The memo also pointed to Goldman’s Ayco business, which works with corporate HR departments, as an opportunity to provide Marcus services to millions of employees.

Solomon first outlined these ambitions in a May presentation, which suggested that the Marcus brand may eventually become a portal for wealth management, insurance and healthcare offerings, in addition to retail banking.

Marcus was first launched in the US in 2016 and is a big part of the firm’s effort to diversity revenue sources and boost earnings as once lucrative trading revenue has slowed in recent years.

Earlier in October, Goldman launched a Marcus savings account service in the UK, which offers customers a savings account paying an interest rate of 1.5% for one year.Around 50,000 customers in the country signed up for the retail product in the span of one week.

Marcus now has 2 million customers and $US4 billion in consumer loan balances, Goldman said in the memo.

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