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- Goldman Sachs has been undergoing a huge transformation in the runup to the storied Wall Street bank’s first-ever investor day.
- That bank posted the presentation materials for the full-day event first thing this morning. They lay out hard return and efficiency targets, a path of growth for newer businesses, and how Goldman is thinking about itself as a “banking-as-a-service” provider.
- The investor day comes after years of analysts and investors asking for more clues around some of the bank’s more volatile businesses.
- Click here for more BI Prime stories.
Goldman Sachs has been undergoing a huge transformation in the runup to the storied Wall Street bank’s first-ever investor day.
That bank posted the presentation materials for the full-day event first thing this morning. They lay out hard return and efficiency targets, a path of growth for newer businesses, and how Goldman is thinking about itself as a “banking-as-a-service” provider.
The investor day comes after years of analysts and investors asking for more clues around some of the bank’s more volatile businesses.
The slides show just how much Goldman has changed already and the big steps it has planned for the next few years to move beyond its exclusive white-shoe roots and become a global, universal bank catering to a wide range of customers.
Ahead of the event, the bank had reorganized its reporting units in order to break out a consumer and wealth management division. And on an earnings call earlier this month, Solomon revealed big changes in strategy for how the bank is rethinking making private-equity bets with its own money.
As Business Insider has reported recently, Goldman has made big moves around lateral hires, said it was relocating top execs into open offices, and rolled out new employee inclusion policies. Meanwhile, at least 36 of the bank’s partners left the most prestigious club on Wall Street in 2019.
Business Insider also attended the event in person — here’s what it was like on the ground.
This slide shows how Goldman’s core businesses have evolved over the decades
Goldman mapped out the evolution from its roots as a trading house and white-shoe bank to today. The newest business at the top of the 2020s column are transaction banking and banking-as-a-service.
Goldman laid out hard return targets and an efficiency ratio for the first time
Goldman Sachs laid out hard return targets, including a metric called efficiency ratio. This measure is closely watched as a sign of how a bank balances its expenses versus revenue — and lower is better.
Here, Goldman flags how it’s going to carry out big cost cuts
Goldman also detailed plans to push into the boring-but-steady transaction banking business
Goldman is targeting a full launch of a cash management platform in the first half of 2020. It envisions gathering $50 billion in deposit balances and $1 billion in revenues over the next five-plus years.
This slide gives a preview of what the transaction banking services will look like on the client side
Goldman gave details for its buy, build, and partner strategy for Marcus, and calls out the potential for Banking-as-a-Service for the first time.
The bank is now pitching itself more like a SaaS provider, and Goldman-as-a-platform includes services like custody and clearing for outside clients
A booth set up in the bank’s lobby gave investors and analysts demos of the Marquee platform.
This slide details Goldman’s Personal Financial Management brand, which is a rebrand for its United Capital acquisition
Goldman announced in May 2019 it was buying United Capital. The $750 million purchase of the wealth-management firm was the bank’s largest deal in more than 15 years.
The bank broke out how much capital it allocates to each division
The bank’s ability to free up capital for more productive uses is a big part of the story.
There were new verticals added for the Marcus brand: savings, insights, pay, and @work.
A point of sale product is new, and shows how Goldman is thinking about leveraging the Marcus brand.
Get the latest Goldman Sachs stock price here.
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