Goldman Sachs has accelerated its move into the consumer lending market with the acquisition of GE's online deposit platform. Goldman will take on $16b in deposits as part of the deal. This announcement comes after the firm hired Harit Talwar, the former CMO at Discover Financial, to focus on creating a consumer lending marketplace
The firm announced Thursday afternoon that it was acquiring $16 billion in customer deposits from GE Capital Bank. The sale of the deposits is the latest step in General Electric’s effort to focus more tightly on its industrial businesses. The purchase will give Goldman a new role as a savings bank for retail customers. The acquisition will give the firm a source of deposits that it can lend to consumers online, a growth area that Goldman recently announced it would pursue. Goldman has traditionally been an investment bank catering almost entirely to corporate clients, with a small business offering private banking services to the wealthy elite.