Financial services major Goldman Sachs is shifting its focus away from the retail banking business, Marcus, Bloomberg reported, citing executives aware of the development.

The Wall Street major is now cutting back the resources dedicated to building a full-service digital bank.

As per the report, rising costs and missed profitability targets are among the causes of concern at Marcus.

Now, Goldman is restructuring and reorienting the operations of the unit, which was launched in 2016.

As part of the plan, the US bank aims to repurpose some of its key retail products and offer them to affluent clients via its wealth management business.

Goldman’s checking account offerings will be provided to wealthy customers and employees at its corporate partners.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The bank will do the same with Marcus Invest and savings accounts.

Goldman plans to retain its credit card partnerships, but it will be very selective about adding them to the list, the report said.

The shift in consumer lending has also triggered discussions for the third big reorganisation of Goldman’s business lines in four years.

The restructuring would see Goldman combine its asset-management and wealth-management businesses.

The business combination is anticipated to further de-emphasise the retail banking business, the report said.

Managers at Goldman have been under pressure to deal with expenses at Marcus.

According to the bank’s internal projections in June this year, losses at Marcus are pegged at more than $1.2bn in 2022.

Citing analysts’ estimates, the publication said that profits at the unit will drop over 40%, which could lead to layoffs and reductions in bonuses.

Last month, the publication reported that the US Federal Reserve is reviewing Marcus’ operations.