Tags: Coronavirus | goldman | pandemic | consumers | digital | banking

Goldman: Pandemic Pushing More Consumers to Digital Banking

Goldman: Pandemic Pushing More Consumers to Digital Banking
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Tuesday, 21 July 2020 04:31 PM

The coronavirus pandemic is accelerating a move by consumers toward online financial services and demonstrating that banks can operate with fewer physical branches, a Goldman Sachs Group Inc. executive said.

Company research suggests that more than a quarter of customers don’t plan to return to branch offices even after it is safe to do so, Harit Talwar, head of Goldman’s consumer bank, said Tuesday at Tearsheet’s Resilience Conference, which is being held online.

Marcus, the online platform run by Talwar, provides checking and savings accounts as well as personal loans. Goldman’s consumer push is part of a bid to become less reliant on trading and investment banking. Low interest rates have depressed the firm’s advantage in high-yield accounts, and prompted Marcus to cut the rate on its online savings account.

“We are hearing through consumers’ behavior that they want online financial services because it is easy, it is convenient and it is safe,” Talwar said. “If they can do that for groceries, why not for banking?” He said that “large banks with physical branches are only helping landlords rather than consumers.”

© Copyright 2020 Bloomberg News. All rights reserved.


   
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The coronavirus pandemic is accelerating a move by consumers toward online financial services and demonstrating that banks can operate with fewer physical branches, a Goldman Sachs Group Inc. executive said.
goldman, pandemic, consumers, digital, banking
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2020-31-21
Tuesday, 21 July 2020 04:31 PM
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