After nearly 150 years of whiz-bang multibillion-dollar Wall Street investment banking, Goldman Sachs is, for the first time, wading into the humdrum world of savings and checking accounts, by (sort of) putting its name on a consumer banking platform. 

Two months ago, Goldman quietly purchased GE Capital Bank’s online deposit platform, rebranding it as “GS Bank,” which retains the company’s well-known initials but also puts a bit of marketing distance between the investment and consumer sides of the business.

However, the Associated Press reports that GS Bank already has more than $1 billion in deposits through this online-only service.

So far, GS Bank allows customers to open savings accounts and invest in CDs.

Goldman’s entrance into consumer banking may seem odd for a company that has been known to work with the ultra-wealthy and large corporations, but it’s the financial institution’s way of establishing a new revenue source.

“We see an opportunity to serve a different customer set than we typically have served,” Stephen Scherr, CEO of GS Bank, tells the AP. “And we do it at a time when there is a lot of change in how banking is done with and for consumers.”

Analysts say the new offering isn’t unusual for big-name financial institutions, as they are working to meet consumers’ preferences.

Greg McBride, chief financial analyst for Bankrate.com tells the AP, that other companies like ING and American Express have previously opened traditional banking options for customers.

“Consumers aren’t exclusively banking with whoever is located in their neighborhood,” he said. “There’s a tangible advantage to shopping around.”

Goldman Sachs dips toe into consumer banking [The Associated Press]

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