Goldman consumer push will more than double in 2 years, says CEO David Solomon

Goldman Sachs expects investment in its consumer digital platform to pay off in less than two years, CEO David Solomon told CNBC on Wednesday.

“I’ve set an end-2024 goal of over $4 billion in revenue for this business,” Solomon said in an interview that aired on “Mad Money.” “Last year [we] had about $1.5 billion in revenue, so we’re showing real growth in that business. »

“We’re expanding the number of customers. We’re expanding the products that we can offer. And when you look at that revenue going forward over the next three years, most of that growth is coming from the investments that have already been made,” did he declare. added.

Goldman Sachs launched its Marcus unit in 2016 as part of a push towards digital-only consumer banking.

  • After offering savings and personal loans, the company added the Apple Card – and last year unveiled an investment product aimed at everyone beyond its wealthy clientele.
  • Since its inception, Marcus has received more than $100 billion in digital deposits from 10 million customers, Solomon said.
  • the recent launch My GM Rewards card, in partnership with General Motors and Mastercard, has attracted 3 million customers, he added.
  • Seeking other opportunities to bolster its position in consumer banking, Goldman Sachs agreed last year to buy fintech platform GreenSky for about $2.24 billion in stock.

Goldman Sachs shares have fallen more than 10% in 2022, relatively in line with the S&P 500’s year-to-date decline, but about twice as much as rivals Morgan Stanley and JPMorgan Chase.

Solomon also told CNBC’s Jim Cramer that banking activity as a whole is currently outpacing 2021 performance, but down from pre-Covid pandemic levels in 2019.

Still, the chief executive said he expects the consumer digital platform to grow significantly in the coming years.

“The construction part is basically in the ground,” Solomon said. “We have a good lead to really expand the platform…and I know if we execute on it, ultimately people will come to appreciate the value of what we do.”

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