CNBC | Hugh Son | Feb 15, 2023

Image: Unsplash/headway

Goldman Sachs has dropped plans to develop a Goldman-branded credit card for retail customers, another casualty of the firm’s strategic pivot

• Not long ago, CEO David Solomon told analysts that the bank was developing its own card, which would’ve made use of the platform Goldman created for its Apple Card partnership.
• That vision unraveled after Solomon bowed to pressure to stem losses from its consumer businesses as storm clouds gathered on the U.S. economy last year. In October, the bank split its retail operations in a corporate overhaul and later said it was shuttering its Marcus personal loans business and shelving plans to widely offer a checking account.
• When it scaled back plans to become the primary bank for the masses, the rationale for a Goldman card evaporated, said one of the people, who declined to be identified speaking about a former employer.

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• But launching its own card would be even more expensive than partnering with an outside brand, as Goldman would’ve footed the cost of acquiring customers and enticing them with rewards.
• The bank’s ambitions in consumer finance outstripped its ability to execute on them, Solomon acknowledged last month. It didn’t help that its existing card products caught the attention of regulators including the Consumer Financial Protection Bureau.

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