Goldman Sachs executive who led consumer banking adoption will be leaving

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Goldman Sachs Group updates

The Goldman Sachs executive who led the consumer banking push leaves the company 10 months after handing over the day-to-day running of the company.

Harit Talwar will leave Goldman in October. The exit crystallizes a transition to a new leadership phase in the consumer business, one of the Wall Street Investment Bank’s largest initiatives in decades.

Talwar, the former US card manager at Discover, was the first employee of Marcus to join Goldman, the new customer credit business, in 2015. The goal was to develop new sources of income for retail depositors and borrowers and diversify from Goldman’s traditional client base of large institutions and wealthy individuals.

“We wanted to set up a fintech in a 150-year-old investment bank. There have been many skeptics, some frankly within the company and many more outside, as to whether this could be done, “Talwar told the Financial Times.

Talwar led the launch of Marcus, named after the bank’s founder, Marcus Goldman. Goldman has also partnered with other companies like Apple to promote financial products, including credit cards.

Marcus now has 2,000+ employees, 8 million customers, $ 100 billion in deposits, and nearly $ 10 billion in credit and card balances.

A report by Autonomous Research earlier this month put Goldman’s Marcus business at $ 7 billion to $ 11 billion. Goldman’s total market capitalization is approximately $ 130 billion.

Autonomous estimates that Marcus is the second largest “Neobank”, a provider of digital banking services, after Squares Cash App.

JPMorgan Chase, the largest US bank with a huge network of brick and mortar branches, had deposits of just over $ 1 trillion in its consumer and community banking unit as of the end of the second quarter.

“When you look at what we’ve achieved over the past five years, be it the size of the deposits, the product range, the breadth of the partnerships, it’s unprecedented. We think it’s one of the best fintech stories in the business, ”said Talwar.

Goldman’s consumer business has seen some changes at the forefront. Talwar handed over management to his long-term deputy, Omer Ismail, in early 2021, who soon left Goldman for Walmart. Talwar had stayed with Goldman as chairman of the consumer division and partner of the bank.

The consumer business is now led by Peeyush Nahar, who joined Goldman earlier this year after previously working at Uber and Amazon.

As a sign of Goldman’s ambitions to further expand its consumer business, the bank announced a $ 2.2 billion deal last week to purchase online loan company GreenSky.

“We have savings, loans, investments and we are about to introduce checks. We are reaching the moment we can help someone manage their financial life holistically, ”Stephanie Cohen, Goldman’s global co-director of consumer and wealth management, told the Financial Times.

Talwar is the last executive to leave Goldman. Stephen Scherr, the bank’s chief financial officer, said last week he would be leaving after 28 years.

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