US banking giant Goldman Sachs has restructured its global business.
Up until now, it was divided into four business segments: investment banking, institutional client services, investing & lending and investment management.
The realignment will see the four transition into:
- Investment banking – by merging part of the previous investing & lending and investment banking units;
- Global markets – formerly institutional client services;
- Asset management – previously investment management; and,
- Consumer & wealth management – a newly formed segment.
Focus on clients
The US firm said: “Consumer & wealth management is a new segment that includes management and other fees, incentive fees and results from deposit-taking activities related to the firm’s wealth management business, all previously reported in investment management.
“It also includes the results from providing loans through the firm’s private bank, providing unsecured loans and accepting deposits through the firm’s digital platform, ‘Marcus: by Goldman Sachs’, and providing credit cards, all previously reported in investing & lending.”
The changes will also be mirrored in the company’s annual results, which are set to be published on 15 January 2020.
The move stems from a commitment to have a more “client-centric” organisation, Goldman Sachs said.
The banking giant is not the alone in restructuring its business units; as, on the same day, Swiss bank UBS rolled out changes to its global wealth management business citing a similar reason to Goldman Sachs: to increase time spent with clients.