Goldman Sachs Group Inc. Treasurer Robin Vince said his company plans to expand its retail deposit gathering efforts.
Goldman is pursuing online deposits through its U.S. platform, which has about $14 billion in deposits, according to an Aug. 1 investor presentation. Vince said the company has plans to grow those efforts and open an online deposit platform in Europe.
"This funding could be used to support our lending activities in Europe and other parts of our business," he said during a fixed-income investor conference call.
Goldman added retail deposits with the 2016 purchase of General Electric's online platform. Since the acquisition, Goldman Sachs had added about $5 billion in deposits and 60,000 consumer relationships, Vince said.
Goldman recently raised the interest rates paid on deposits to 1.20% from 1.05%, which had been its rate since the GE deal. Vince said the company could afford to pay higher rates because it does not have the expense of managing a branch network.
"For us, despite the competitive rate, this pricing is also more favorable relative to many other sources of long-term unsecured funding," he said.
Vince added that Goldman's online lending platform, which is called Marcus, has surpassed $1 billion in loans. The program continues to focus on prime borrowers and follow a deliberate growth plan.
"As we've said all along, this is a program where we were going to be crawling first and then walking before we run," Vince said.