Goldman Sachs Group Inc. Considers Launching an Online Bank
Goldman Sachs is considering starting an online bank similar to that of Bank Of America, Citigroup, and ING. Now that GS is a bank-holding company, starting an online bank would allow them to take deposits and use them to fund various businesses. And, with the very uncertain economic future of banks and financial institutions, GS would do themselves well to broaden their stroke to as much of the market as possible.
The possible online bank hasn’t been named yet, and many details of its operating plans are undecided. It is likely to offer a range of savings products, such as certificates of deposit, people familiar with the matter said.
The possibility of GS starting an online bank shows the rapid change on Wall Street these days. The company which once only did investments, now is seeking to broaden its range of products and its direct consumer interaction.
Goldman executives haven’t ruled out acquiring a bank with substantial retail operations, according to people familiar with the discussions. But the firm’s decision to seek a state banking license in New York is a sign that expanding across state lines is a low priority. Regulators approved the license last week.
