Goldman Sachs' consumer banking division, Marcus, has lost $1.3 billion since 2016 – and still faces considerable risks:
That figure has been driven by spending on startup acquisitions, cloud storage space, and tech talent hiring, among other factors. The bank has also seen loans go bad at a higher rate than rivals have, with one potential explanation being that Marcus launched without a collections team to press delinquent borrowers, something it's since rectified.A high loan default rate dampens the chance for profitability.
Consumer banking could hurt its reputation as an upmarket bank.While it makes sense that the bank is seeking to be more well-rounded — its income from the channels it's traditionally known for like trading and merger advising has — Goldman's reputation has been as a leader of high finance.
It remains to be seen whether Goldman Sachs will overcome the risks to turn its retail banking play into a profit generator. It's possible that high loan default rates and the ongoing cost of retaining tech talent will remain consistent problems, or that Marcus will simply be unable to carve out a niche in retail banking against major competitors like JPMorgan Chase and Wells Fargo.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
'If you opt in, we will not leave you behind' — PwC's global chairman announces a $3 billion investment in job trainingPwC, the global professional services firm, is investing $3 billion over the next few years into job retraining, which it sees as a competitive edge.
Leer más »
US consumer is 'still holding up' as trade war with China drags on, says UPS CEO'It may not be as strong an increase as last year, but we still feel pretty good about what we are seeing,' says UPS' David Abney.
Leer más »
Stocks sink as U.S. manufacturing shrinks in reflection of trade warU.S. stocks turned lower after a key gauge of manufacturing posted the weakest reading since the end of the last recession. Treasuries erased losses.
Leer más »
Ferne McCann and Jordan Hames dish the dirt on their budding romanceEXCLUSIVE: Ferne and Jordan opened up about each other after they were snapped having a snog last week
Leer más »
Turkey will continue efforts to shed light on Khashoggi murder - ErdoganTurkish President Recep Tayyip Erdogan says Turkey would continue pressing for the whereabouts of slain journalist Jamal Khasshoggi's remains and the identities of those responsible for his killing
Leer más »
Dakota Johnson Launches Podcast for Sexual Violence SurvivorsDakota Johnson Launches Podcast to Share Stories of Sexual Violence Survivors
Leer más »