The director of Goldman Sachs, who led the launch of consumer banking, was due to leave

Goldman Sachs Group Updates

The director of Goldman Sachs, who initiated his emphasis on consumer banking, leaves, 10 months after he handed over the day-to-day running of the business.

Harit Talwar will leave Goldman in October. This departure crystallizes the shift to a new phase of leadership in his consumer business, one of Wall Street’s biggest investment bank initiatives in decades.

Talwar, Discover’s former head of cards in the US, joined Goldman in 2015 as the first employee of what would later become Marcus, a new consumer loan company. The goal was to find new sources of income for bank depositors and borrowers, diversifying them from Goldman’s traditional customer base of large institutions and wealthy individuals.

“We decided to build a fintech in a 150-year-old investment bank. There have been many skeptics, some honestly within the company and many outside the company, about whether it can 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 such as Apple to promote financial products including credit cards.

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

This month’s Autonomous Research report estimated the value of Goldman’s Marcus business at $ 7 billion to $ 11 billion. Goldman’s total market capitalization is approximately $ 130 billion.

Autonomous has estimated that Marcus is the second largest “neobank” digital banking provider by revenue from Square’s Cash.

JPMorgan Chase, the largest US bank with an extensive branch network, had just over $ 1 trillion in consumer and social banking deposits at the end of the second quarter.

“If you look at what we have achieved over the last five years, whether the size of the deposits, the range of products, the scope of partnerships, this is unprecedented. In our opinion, this is one of the best fintech stories in the industry, ”said Talwar.

Goldman’s consumer business experienced a change at the top. Talwar handed over the day-to-day management to his longtime deputy, Omer Ismail, who soon left Goldman for Walmart in early 2021. Talwar remained at Goldman as chairman of the consumer department and partner at the bank.

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

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

“We have savings, loans, investments, and we’re close to getting started. We are coming to a point where we can help someone holistic manage their financial life, ”said Stephanie Cohen, Goldman’s Global Co-Manager Consumer and Wealth Management, to the Financial Times.

Talwar is the last senior manager to leave Goldman, and Stephen Scherr, the bank’s chief financial officer, said last week that he would leave after 28 years.

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