Goldman Sachs Group is shifting a heavily touted business line into its wealth management unit as the bank eyes expansion through products that can be pitched to that division's customers.
The company is handing oversight of the Marcus business — its retail banking effort, which offers personal loans online — to its $1.5 trillion investment management division, according to a memo seen by Bloomberg. The move is aimed at starting new business offerings under the Marcus brand that can be sold to the unit's expanding roster of clients.
A spokesman for Goldman Sachs confirmed the contents of the memo.
New Chief Executive Officer
David Solomon earlier this year showcased how some of the wealth group's initiatives could be used to draw more clients to new consumer products. While Marcus currently offers only personal loans and deposit accounts, it has ambitions to expand into mortgages, credit cards and retirement-planning products.
The shift highlights Goldman's evolving strategy with the customers it targets through its wealth management business. The company is increasingly moving beyond ultra-high-net-worth individuals and widening the net to attract new clients.
(More: Goldman pushes deal-makers to land wealth management clients)
With the move, Goldman is disbanding the consumer and commercial banking division that was set up under Stephen Scherr. A vacuum at the top of the unit was created after Mr. Scherr was promoted to chief financial officer.
The
Marcus leadership will now report to Eric Lane and Tim O'Neill, the two heads of the investment management division, which now brings in almost 20% of Goldman's revenue. The group is split between asset management and handling the finances of the wealthy.
(More: With new acquisition, Wall Street's 'vampire squid' aims to be cuddly)
