David Solomon, the chief executive officer of Goldman Sachs Group Inc., jumped on a flight in 2019 to meet Reese Witherspoon. The Legally Blonde star-turned-mogul was toying with offering online financial services to her fans, and the head of Wall Street’s most prestigious bank wanted in. He saw it as a potential source of business for Marcus, Goldman’s foray into digital banking for the masses.
That moment may have been peak Marcus. Solomon, who’s spent much of his four years atop Goldman pitching shareholders and his own executives on the benefits of building a full-service digital bank, is now reeling in those aspirations and the resources dedicated to the project. (The meeting with Witherspoon didn’t lead to a deal.)
Cost overruns and missed profitability goals have set off discontent inside the bank, led to concerned questions from regulators, and brought about the dismay of shareholders. Now Goldman is restructuring and reorienting those operations, say executives with knowledge of the plans, who asked not to be identified describing internal talks. A spokesperson for the bank declined to comment.
Rather than catering to just about anyone, Goldman will sling some of its key consumer products through its wealth-management business. Checking accounts, once widely expected to get a big rollout to everyday consumers, will instead be steered toward well-to-do clients and employees at corporate partners. The same goes for the bank’s automated investment adviser, known as Marcus Invest, and savings accounts.
Denne historien er fra October 17 - 24, 2022 (Double Issue)-utgaven av Bloomberg Businessweek US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 17 - 24, 2022 (Double Issue)-utgaven av Bloomberg Businessweek US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers