The sale of that company, which has been making parts of the US currency bill going back to the 19th century, was among the last deals she worked on before moving to the executive suite. By continuing to use our site you agree to our. And in order to do that, youve got to do a couple of things. Goldman Sachs consumer exec Stephanie Cohen explains why the Wall Street bank just inked a $2.2 billion home-improvement lending deal; . You mentioned the Apple card. And then weve also done that with Walmart and Amazon in terms of providing credit to their merchants. Goldman Sachs Group Inc's Chief Executive David Solomon told investors on Tuesday the bank is considering "strategic alternatives" for its consumer arm, raising prospects for a potential sale after the business lost billions of dollars. How big the Dallas operation will get is a source of regular speculation in the North Texas real estate community. One, we have our advisor led businesses. Cohen, whos worked with large corporate clients including 3M Co. a relationship previously fostered by Solomon was named to the strategy post after Stephen Scherr, the previous mantle-holder, was tapped to build out the consumer-banking unit. While wealth management services have been a mainstay for the 153-year-old investment bank, the shift to offering consumer banking happened less than six years ago. We'll send you a myFT Daily Digest email rounding up the latest Goldman Sachs Group news every morning. Wow, this is so devastating. Stephanie Cohen, culture builder, lifelong learner, thanks so much for joining me on Emerge Everywhere. As an investment banker for close to 20 years, my presence in board rooms was often an anomaly. Youve only been in this new role for just a few months and weve talked a fair bit about the great work you did when you were chief strategy officer starting in 2018. Theres just so many things that you learn from the richness of those individual conversations. Internet Explorer is no longer supported on our website. But by the way, you cant do that always at scale. Stephanie Cohen: And the question is, how do you do that at scale? Ms. Cohen serves on the National Board of Directors of College Spring and as a member of the Board of Quill.org. The world is awash in capital and you never see that. You can learn more about how we use cookies by reviewing our Privacy Policy.Dismiss, Global Co-Head of Consumer and Wealth Management. Solomon, who recently laid off more than 3,200 workers in what was dubbed "David's Demolition Day," was pounded with questions from Wall Street analysts about the bank's . You can use that as something that bothers you, or you can use that as a point of differentiation. Our 150 years of financial services experience and things like risk and compliance, our scale, which is our ability to invest, but also the balance sheet, which provides the ability to provide things like credit and great relationships with people like Apple and GM. And so I think its embedded in your question, but I think its a fair question. The news, which . The phrase is often used as company jargon for a sale or merger. Were really excited about our Marcus Invest launch and were really excited internally because it brings together the best of our wealth management business with the best of our consumer business. By continuing to use our site you agree to our Terms of Use and Privacy Policy. The reality is that investing can be intimidating for a lot of people. Dallas led all metropolitan areas in 2021 in net tech job growth, adding 5,321 positions, according to a new report by CompTIA, the nonprofit association for the information technology industry. A checking account is currently in beta, according to Cohen. We want to be the bank on your phone, she says. And so I found the book and it was incredibly interesting, but also devastating in so many different ways, because it was very clear that the financial system was not working for most people. You can connect with me on Twitter @JenTescher. And then as you mentioned, we have a digital consumer bank. The High. and expects to roll out digital checking accounts in the next few months. For example, one of the things I learned early on was that when I was on big conference calls with lots of people, everyone would know when I spoke because I was the only woman., If you work in a company and you want to become the CEO or the CFO, when you look at the person who has the role, and you might think, Im nothing like that person, so I can never do that., Instead, I found it really helpful to look at abroadgroup ofpeople and look for things that I like or relate to. And so I did that. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. These stories and more in banking news this week. A Goldman Sachs lifer who rose through the ranks of mergers and acquisitions after starting as an analyst fresh out of college, Stephanie Cohen, 42, became chief strategy officer in January. And so I would be that person that was like, Please just explain this to me from the base level. And when you get to that base level, you actually start to understand not only the products and how theyre all executed, but how it affects an end customer. And I do think were in this moment of have a lot of people around, have them continuously getting better, be focused on execution and kind of getting stuff done, but being constantly learning in the process. Goldman now has credit-card deals with And in this new role in particular, but I was doing some of this as chief strategy officer, but now doing much more of it, I think you really have to figure out how you can listen to customers directly. And were going to be better if we do that. Wells Fargo's asset cap has been in place for fi ve years, and there's no end in sight. Stephanie Cohen, Goldman's co-head of consumer and wealth management, is working on setting up a second base for herself in Dallas. And the reason why we decided now was the right time for Goldman Sachs is because one, technology. Since the start of this year, Cohen has also transitioned from investment banking to serve as the bankschief strategy officer,leading a team that decides where the bank should pursue new lines of business. I didnt have that term before, but as a giver. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. I suspect theres also something to it about the moment were living in, the era were living in. You are just one step away from creating your watchlist! My husband and I were talking about it last night, we all still need a lot of help. The reality is, theres basically two different states where people have some money and they either want to figure out a way to invest it or save it or spend it or they want to do something and they need to figure out how to pay for that. Goldman Sachs has created a new consumer and wealth management division co-led by Stephanie Cohen. She started as an analyst in 1999 and has held a series of leadership positions in mergers and acquisitions. The banking industry appears to be stuck when it comes to diversifying the leadership ranks. And then, were going to be part of fixing this and were going to have to work with a lot of people to fix it because the financial system is this intertwined organism. Not much is scary after that. Copyright 2022 HT Digital Streams Ltd All Right Reserved. For the best Barrons.com experience, please update to a modern browser. And what were doing in our division is we do it a couple of different ways. Stephanie Cohen: And it sounds like you had to do a lot of learning because your time at Goldman, which is long, had largely been in a variety of M and A roles. We do it externally. Stephanie Cohen, global co-head of consumer and wealth management at Goldman Sachs, speaks during a dedication ceremony of the company's branded terrace at the University of Texas at Dallas. You mentioned Marcus, I think its fair to say that four plus years ago when Goldman Sachs launched Marcus, it wasnt exactly what anyone was expecting to have a titan of Wall Street, all of a sudden building a business to focus on the financial needs of everyday people. And so, one of the things we certainly talk about is the board initiative, which was that we werent going to take companies public unless they had at least one diverse board member. And also, we didnt really know exactly what that was going to look and feel like, but what we figured out is actually people really do like it. 2021, ``ENVIRONMENTAL JUSTICE FOR ALL ACT'' ===== LEGISLATIVE HEARING before the COMMITTEE ON NATURAL RESOURCES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTEENTH CONGRESS SECOND SESSION _____ Tuesday, February 15, 2022 _____ Serial No. The 9 biggest takeaways from Goldman Sachs' investor day, from a tense Q&A with CEO David Solomon to the tater tots for breakfast. Goldman Sachs Group Inc's Chief Executive David Solomon and top executives will give investors an update on their strategy on Tuesday. And thats really the most exciting thing about being able to run this division. 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Goldman Sachs Group Inc's Chief Executive David Solomon and top executives will give investors an update on their strategy on Tuesday. And just a few weeks ago, she was asked to jointly lead the banks global consumer and wealth management division. Because you cant do things exactly the same way. Stephanie Cohen is Global Head of Platform Solutions and a member of the Management Committee. Consequently, they can be prickly customers. And so what were really saying is were really proud advocates for inclusive capitalism and theres no better way to do that than to serve millions of consumers. They are not only of course the right thing to do, but it is the only way to run the business. I really enjoyed hearing about how you go about listening. And so the next question is, how do you listen to the data? She started as an analyst in 1999 and has held a series of leadership positions in mergers and acquisitions. And as youve mentioned, weve been through an evolution and the reality is we had to start somewhere so we started with loans as you talked about and we really felt like we were doing that in a different way and were proud of what we launched. But I would sit in meetings and just be like, Im sorry, Im just going to ask this from the most basic level. And to this point of financial services being really complicated, I think lots of people sit in a lot of meetings and everyone else thinks that everyone else understands something and they actually dont. To learn more about the work and research we do, please visit emerge.finhealthnetwork.org. I love that you had that visceral experience from the book and particularly given the role youre in now. No question. We recommend using Google Chrome, Mozilla Firefox, Apple Safari, or . So I heard you mention that youre getting ready to add a set of investment tools for Marcus customers and that makes me think about what weve been witnessing over the last couple of weeks with the GameStop frenzy. And that really created an environment where no ones afraid to ask kind of the dumb question, because Stephanies always asking the dumb question because I really wanted to learn. And theres a way to do that for a Marcus customer, but maybe theres over time a different way to do that for a General Motors customer or others that we partner with. See our career opportunities. And then, I think the most important thing is this idea of being willing to try and realize in the act of trying its not going to be perfect right away. And so now one of the things, weve tried and a new skill actually inside of Goldman, which is this experimentation. Bringing in young talent and training those people will benefit not just Goldman but other companies around the city looking for engineering talent, she said. And its also, I think, no accident that youve also been anointed to the operating committee. In January 2021, she was appointed global co-head of consumer and wealth management. Goldman chief executive David Solomon announced Tuesday that he has shuffled the executive ranks once again, this time making Stephanie Cohen co-head of the $2 trillion megabank's consumer. And that we were going to build an ecosystem around it. Secondly, culturally. Her appointment this summer to Goldman Sachs' management committee made her its youngest member. Maybe If youll indulge me because I was chief strategy officer, well go up a level to the corporate strategy just for a second, which is that when we think about what were trying to do at Goldman Sachs, its to advance sustainable economic growth and financial opportunity. In a letter to Federal Reserve Chair Jerome Powell, Republican members of the Senate Banking Committee urge the central bank to be mindful of tailoring rules in its ongoing "holistic" capital review. And so I do think this idea of bringing the best of Goldman Sachs, this corporate franchise and the relationships we have with those brands and then taking these in many cases, digital capabilities weve built in the consumer business and embedding them into those ecosystems in a way that serves their customers, I think is one of the ways that we can access this much broader audience. And then we have this great program where we work with companies on financial wellness for their employees and we call that Ayco.