Need to Know
- Goldman Sachs announced the development of a digital wealth management tool accessible through its newly launched Marcus app.
- The bank also announced plans of a digital checking account and plans to have it available to consumers via Marcus in 2021.
- Traditionally an investment and financial services company, Goldman developed consumer-facing Marcus in 2016 as a way to diversify its revenue streams and offer loans and savings accounts to users.
Earlier this month, Goldman made headlines with the launch of its consumer-facing Marcus app, news customers waited three years to receive. Today, the investment services company continued to disrupt the financial sector with an announcement of both a digital wealth management tool and a digital checking account.
“We aspire to be the leading digital consumer bank. We’re starting with loans, we added savings and cards, and we’re working to build out the balance of the digital products suite, including wealth and checking,” Eric Lane, global co-head of the consumer and investment management division, told investors.
It’s predicted that both of the new offerings will live on the Marcus app, replacing the need for traditional brick and mortar banks. “We’re trying to deliver a retail bank branch through your phone,” Lane told investors. With more and more customers opting for apps over tellers, and over 4 million Marcus users, Goldman’s digital focus places the bank in a solid position to make waves in the financial industry. Competitor Ally Financial has seen major success embracing a branchless banking model.
Earlier this month Goldman announced a company-wide reorganization, putting emphasis on customer-facing products and the revamp of Marcus. The announcement was followed up by more positive news when Apple posted record gains due to its rollout of the Goldman Sachs-issued Apple Card, which led to increased iPhone purchases.
Goldman has plans to double the consumer deposits it holds to $125 billion over the next five years and to generate up to $900 million in pretax income excluding reserves. With its consumer-facing digital upgrades, the bank has placed itself in a strong position to succeed in the digital age.