And my mom who is a history teacher at some point and really cares about history and I love history and read it. So much. Because for us, this is a business and a strategic imperative. More on Stephanie. But instead of it being about how if elected, she will be the first woman to be CEO, but instead they chose to call her 'female banker.' Today, the consumer business at Goldman has more than 14 million customers and over $100 billion in deposits and $16 billion in cards and loans. Stephanie Cohen is Goldman Sachs' Chief Strategy Officer and an Ex Officio member of the Management Committee. Prior to her current role, Stephanie drove strategy, M&A, strategic investing, and partnerships as the firm's chief strategy officer. And then it turned on Robinhood and Goldman is in such an interesting place because youre both Wall Street and youre a FinTech in a way. That thats clearly a very important part of your role and has been. After, it was the bank's Stephanie Cohen who reiterated that Goldman is considering strategic alternatives for its consumer lending business. It was in some respects kind of an embarrassing realization to have worked in financial services for almost two decades and to realize that I didnt understand how the financial system operated and there were really complicated parts of the financial system that I understood from a capital markets perspective, but from a day to day, how does an average American experience the financial services system? Got it. It didn't go well. And what were doing in our division is we do it a couple of different ways. I was a big bank diversity hire. I suspect that theres only so far a brand like Marcus can go in terms of meeting the needs of underserved consumers. Natalie Walters, Business reporter. 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. Tell me more about that choice and sort of what youve learned from it. And hopefully again, thats millions of customers that we will speak to and we can be helpful to. Explore how to make financial services a force for good. Talk to me a little bit about how thats happened. And so I think that Ive learned over time that while being an individual contributor and being really fantastic at what you do, actually the way to really get stuff done is make everyone around you better. We want to be your primary bank. Unfortunately, weve been getting to know most of them over Zoom, which is not nearly as much fun as getting to know people in person, but we get to visit peoples homes through Zoom and see their kids and their pets. because investing and helping companies grow is our business," Stephanie Cohen, Goldman Sachs' chief strategy officer . Figuring out how what youre doing is affecting people. For example, when I am 60 and look back, what might I need the most? How you recruit, you retain and you develop your own people and there are many things that were doing around that, but it also gets to the way of how you serve your clients. As an investment banker for close to 20 years, my presence in board rooms was often an anomaly. And I really got to know them on a totally new level because they were talking to me about their lives and their goals and their dreams and how we could be helpful. Oops! And so what are we? Stephanie Cohen: One, it affects how you manage your own people. Net revenues for the consumer business in the second quarter were $608 million, 67% higher than the second quarter of 2021, primarily reflecting significantly higher balances on both credit card balances and higher deposit balances. William (Bill) Sachs Goldman, the scion of a prominent family of Jewish philanthropists in San Francisco and himself a board member of the New Israel Fund, died in a crash of his private plane. And I raise all of that because its really important that this idea of inclusion and diversity gets to every level of the organization and people realize how deeply embedded it is in your business and your strategy and Launch with GS is an example of, the board initiative is an example, but there are many others. Things like auto pay. Senior Editor, Women's Programs, American Banker. She went on to a more traditional M&A role in the industrials team. And in that business, we have two different pieces, one, which is Marcus, which you mentioned, which helps customers save, borrow, and soon invest and spend. On Monday, the company unveiled a branded terrace at the University of Texas at Dallas in Richardson that it hopes will inspire students to want to learn more about Goldman Sachs, she said. And so we felt like now is the right time where we can then take our capabilities, which were you alluded to this, but our capabilities in technology, but we could do the consumer technology with a blank sheet of paper. And you asked me about the focus. You can use that as something that bothers you, or you can use that as a point of differentiation. Learn more about Marcus by Goldman Sachs and check out additional episodes of EMERGE Everywhere. The reality is that investing can be intimidating for a lot of people. Wow. She said the senior leadership team understands that diversity and inclusion is a "business imperative'' and that "this needs to be discussed in the same meetings where we talk about revenue or investment strategies. Diversity, equity and inclusion are core to our mission, see why. It had revenue of $1.5 billion in 2021. Mr Solomon teased a sale, saying Goldman was exploring "strategic alternatives". Her appointment this summer to Goldman Sachs' management committee made her its youngest member. And then we have this great program where we work with companies on financial wellness for their employees and we call that Ayco. Ms. Cohen serves on the National Board of Directors of CollegeSpring and as a member of the Board of Quill.org. I find that being in the business that Im in, similar things happen at cocktail parties, I get random questions, financial questions and I think its clear that I am not a financial planner. Theres a savings portion of Marcus. Goldman Sachs Group Inc's Chief Executive David Solomon and top executives will give investors an update on their strategy on Tuesday. In 2019, Goldman launched an Apple credit card, and last January it rolled out a GM credit card. ", Cohen led "Launch with GS," the bank's $1 billion commitment to increase access to capital for women, Black, Latino and other diverse entrepreneurs and investors. 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. In The News Closing the Gender Investing Gap By Stephanie Cohen, Chief Strategy Officer, Goldman Sachs June 19, 2018 I've worked my whole career in an industry dominated by men. The 43-year-old. Goldman Sachs has chosen Stephanie Cohen as co-head of its consumer and wealth management . Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. And that we were going to invest behind diverse managers because you needed to get money in the hands of diverse managers so that they could get money in the hands of diverse companies. And so 85% of all venture capital dollars goes to all male founded teams. My husband and I were talking about it last night, we all still need a lot of help. For the best Barrons.com experience, please update to a modern browser. Listening is the most important thing that I do. The bank will aim to grow fees from asset and wealth management and drive better performance in its fintech unit, while taking more market share in its traditional powerhouses of trading and investment banking. In case you cant find any email from our side, please check the spam folder. I think people have gotten to a place, and theres some good and theres some bad here where the phone is kind of really the center of everything that they do and how they interact with so many parts of their lives. Cohen joined Goldman Sachs as an Analyst in 1999, was named Managing Director in 2008 and Partner in 2014. Its a great point. . And when I was in my role as chief strategy officer, we created this thing called Accelerate, which we call our internal innovation engine. To further the bank's efforts to become a Main Street lender, Goldman now offers credit cards and buy now/pay later options for consumers. See our career opportunities. [House Hearing, 117 Congress] [From the U.S. Government Publishing Office] H.R. Theyre sitting there every day and theyre trying to figure out how they can do things in a really complex financial world that are simple and transparent and valuable. The . By doing that, you can actually, authentically be the person you want without assuming that you have to be someone else., Sam Bankman-Frieds Deceptions Allegedly Include Millions in Illegal Campaign Contributions, The Fed Raises Rates as Expected, But Spooks Investors With a Gloomy Forecast, Meta Is Sued for Allegedly Profiting From Hateful Content on Facebook in Ethiopia, Twitter Suspends @ElonJet, the Account Tracking Musks Private Flights. Meet the forward thinking leaders challenging the status quo and unleashing creative new ways of improving financial health by seeing their customers, employees, and communities in 3D. Well, this is one of the most exciting versions of quote unquote embedded finance that Ive heard about in a long time. 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. In her new role overseeing consumer and wealth management for the organization, she shepherds a vision for diversity and inclusion that prioritizes broad consumer access to high-quality financial solutions. When I started as chief strategy officer, I had, of course that realization that you said exactly, which is okay, Ive been at Goldman Sachs 17, 18 years and Ive been sitting in the investment bank and Ive learned a lot, but there is a lot about what we even do at Goldman Sachs that I dont understand. That theres sort of a graduation approach and that if I engage folks early with more basic financial products and services, theyll ultimately become the wealth management customers of tomorrow? We believe our investment in these strategic locations enables us to build centers of excellence around specific capabilities that support our business initiatives, the company said. wants to be your digital banker, and it has assigned the job to Stephanie Cohen, marking her second year on the Barrons list. Jennifer Tescher: 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. Goldman Sachs managers say one takeaway of the pandemic. Ms. And I remember these moments of falling really hard and your parents, your coach is like, Oh my. I used to get off the ice from practices and be soaking wet because you just are cleaning up the ice falling because its the only way to learn a new skill. March 02, 2023, 14:16 IST. And the reason why we decided now was the right time for Goldman Sachs is because one, technology. But, if you make the enrollment default and you have to opt out if you dont want to do it, more people end up investing in 401(k).. Jennifer Tescher: Im actually a former journalist. Certainly youre gifted and talented. Its pretty amazing feat that youve managed to essentially build a homegrown digital business from inside this storied institution. Im certain that I had it before, but its really deeply ingrained in the Goldman Sachs culture, but I happen to naturally be, I guess what Adam Grant would describe as a giver. And so were having a great time, really engaging with our team. A Flagstar executive said the mortgage-focused bank is "not just going to sit on the sidelines and watch this happen.". If they want to build companies that are going to succeed, having diverse voices around the table is one of the most important things that they can do. Upon arriving, her trajectory changed, and she has remained at the firm for over two decades in a variety of roles. Which is that theres a specific type of customer thats the Marcus customer. Jennifer Tescher: New York: The venue was the Gotham Club an exclusive den inside the San Francisco Giants home stadium. We'll send you a myFT Daily Digest email rounding up the latest Goldman Sachs Group news every morning. By continuing to use our site you agree to our. 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. Internet Explorer not supported . The 9 biggest takeaways from Goldman Sachs' investor day, from a tense Q&A with CEO David Solomon to the tater tots for breakfast. After getting an offer to work at Goldman Sachs in investment banking out of school, she thought she would work there for two years and then attend law school. She is a key architect of the bank's . The bank says the candidates failed to make full disclosures. In the latest in a rapid career of. The business is not yet profitable but is expected to hit revenue of $4 billion by 2024, she said. Already a member? Log in to our website to save your bookmarks. I didnt have that term before, but as a giver. And so kind of being happy with that rather than it being a negative, it being a positive I think its one of the most important life lessons and figure skating teaches you that in spades. Youve got to figure out whats important to you and what you really want to spendmoney on. As founder and CEO of the Financial Health Network, Ive spent my career breaking down silos by engaging with innovators across industries, and now, Im sharing those conversations with you. Cohen said she expected Platform Solutions to break even on a pre-tax basis by 2025 after it lost $3 billion in nearly three years. 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. Speaker Bio: Stephanie Cohen is Goldman Sachs' Chief Strategy Officer and a member of the Management Committee. And so in skating you fall all the time. 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. Collage of David Solomon . 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. The group, typically considered the killjoys within investment banking, have to tell senior bankers about the deals they cant pursue a tricky task in the best of times. Goldman Sachs Group Inc. named John Mallory and Meena Flynn as co-heads of global private wealth management, a business that's key to the bank's aim to diversify revenue streams beyond its core. he has worked onhistoric large corporate deals, including Chryslers repayment of a U.S. government loan, which marked the automakers comeback after the 2008 Financial Crisis, Last weekend, Cohen joined a panel at this years. But Ive also noticed that when women start talking to friends about business ideas, they actually want to help each other.. And so the main thing Im focused on is people internally and externally. Stephanie Cohen is global co-head of Consumer and Wealth Management at Goldman Sachs, a member of the firms Management Committee, and global executive sponsor of the Womens Network. Yeah. By the way, a lot of people who spend their careers in financial services. My moms a teacher and its just something. Stephanie Cohen, cohead of Goldman's consumer and wealth group, is the only woman heading one of the bank's primary business divisions. Its been really fun getting to know all of them. Goldman Sachs Group wants to be your digital banker, and it has assigned the job to Stephanie Cohen, marking her second year on the Barron's list. Some inside the bank wonder whether shes destined to rise even higher. We call those businesses, private wealth management and personal financial management. Stephanie Cohen: You are just one step away from creating your watchlist! And the thing I say all the time is that you cant talk about these things in two different places. I did that internally and I also did it externally. Cindy Ord/Getty Images for Girlboss Rally NYC 2018. "LeaseQuery has found a way to deliver easy-to-use solutions to their clients' complex problems," said Stephanie Cohen, Goldman Sachs' chief strategy officer who founded Launch With GS, an . For reprint and licensing requests for this article, https://www.linkedin.com/in/mary-ellen-egan-97506b5/, Banking on sisterhood: A Black sorority launches a credit union. This copy is for your personal, non-commercial use only. 1 Executive Summary Primary drivers Key focus areas INVESTOR DAY 2023 PLATFORM SOLUTIONS . Ms. Cohen serves on the National Board of Directors of College Spring and as a member of the Board of Quill.org. Download the Mint app and read premium stories. There werent a lot ofinvestment bankers that looked like me. And the question, which is kind of an obvious question is why now? Actually, I got on a plane a lot. She dug into the bones of the deal and was very compelling.". And so I did that and I mirrored that with my people. "We believe that there is a real need for consumers to better manage their financial lives, and we have the capabilities to serve them," Cohen said. I love that you had that visceral experience from the book and particularly given the role youre in now. A great question. 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. But then there are customers that are General Motors customers and that are Apple customers and that thats much broader and what do they need? I talked a little bit about all the businesses that Tucker and I are managing and they include these advisor led wealth management businesses that we have been in for decades. And so this real focus on execution, which I no doubt learned by being a mergers and acquisitions banker inside of Goldman Sachs. Goldman Sachs Group Inc's Chief Executive David Solomon and top executives will give investors an update on their strategy on Tuesday. She also serves as trustee for the Board of The Economic Club of New York. Click the AdBlock Plus button on your browser and select Disable on Observer.com. Thats not something anyone told us to do so we didnt listen in terms of having a conversation, but we watched the way that customers are interacting with our product and were learning from that. We want to use simple, transparent and valuable products to help people manage their financial lives. Stephanie Cohen: Its really complex. I know many of them, but it says something entirely different to have someone at the operating committee level. Some of my favorite ones have been, we created a customer assistance program right as COVID was starting to help people so that they could defer loan payments and credit card payments and just listening to why it mattered to them. But in July of this year, she scored a seat on the banks most elite decision-making team, a 33-person management committee appointed by new CEODavid Solomon. to talk about career, money and life. Copyright HT Digital Streams Limited All rights reserved. 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. Prior to that, Ms. Cohen was a Vice President in the Industrials and Merger Leadership Groups in San Francisco. Financial Health Pulse 2022 Chicago Report, Jennifer Tescher | Leaning Forward for FinHealth. And then to your point, the clients and the customers in those businesses that were ultimately serving. Youve mentioned the fact that soon youre going to be launching a new set of investment options and opportunities. This $90 million Liked by Stephanie. She joined Goldman Sachs as an Analyst in 1999, was named Managing Director in 2008 and Partner in 2014. General Motors Cohen drives strategy, Mergers & Acquisitions (M&A . He will report to Stephanie Cohen, Goldman's global co-head of consumer and wealth management. In a sign of her rising stature, Cohen was selected to lead the creation of a new unit to service a critical client base for Goldman Sachs the private-equity firms, family offices and other strategic investors who are a force of their own in the deal-making world. It was during a stint in the conflict and business selection group that her work stood out, according to a person who worked with her at the time. The caucus started as a small gathering a decade ago organized by Stephanie Cohen then an up-and-coming banker at Goldman Sachs, who was vexed by the chummy boys network thats long dominated the business of guiding mergers and acquisitions. Jennifer Tescher: Stephanie Cohen is global co-head of Consumer and Wealth Management at Goldman Sachs, a member of the firm's Management Committee, and global executive sponsor of the Women's Network. And then as you mentioned, we have a digital consumer bank. The second thing is this kind of get stuff done attitude. And in doing that, we want to fundamentally change the way people experience financial services and in doing that improve their lives. Shell be among seven women on the 33-person panel. Jennifer Tescher: terms: Goldman Sachs Banks Stephanie Cohen Succession. Great. Sign In. My guest today is one of the most powerful women on Wall Street. And just to go back to your very specific question on are we trying to take these customers and turn them into Goldman Sachs customers? How big the Dallas operation will get is a source of regular speculation in the North Texas real estate community. Stephanie Cohen, the 'female banker' is surely one to shatter the glass ceiling, all the CEOs of Goldman Sachs so far have been old white men. And in order to do that, youve got to do a couple of things. And how do you feel about essentially being a change agent in this way? Yeah. Tiger Trump and nothing to ex-husband Donald Trump. And thats really the most exciting thing about being able to run this division. Again, in my role as chief strategy officer, the way that we talk about it then, and certainly the way were talking about it now is that inclusion and diversity are absolutely strategic imperatives. I think I learned that at a really young age. When I walked into a board room, theyd expect a very tall man, but instead theyd get a relatively shortwoman. And how can we serve them? And you talked about that mission, and I want to come back to it because it really is there every day when our people design our products. Now weve put a bunch of features into our products to help people make better decisions. And the question is, how do you do that at scale? Consequently, they can be prickly customers. It was a pre-COVID time period. For Members Only Federal Credit Union in Chicago, which was founded by the African American sorority Alpha Kappa Alpha, is focused on helping members build generational wealth. "We have savings, lending, investing, and we're close to launching checking. But she doesn't see what the fuss is about. Stephanie Cohen is now the management committee's youngest, with the rare label of 'ex officio' member. They are Goldman Sachs customers. We obviously have a lot going on and were excited about so many things and hopefully we get to talk about them, but what Im most looking forward to and where were spending most of our time is of course on people because were the division that focuses on people. Ms. Cohen also led Launch With GS, Goldman Sachs $1 billion commitment to invest in companies and investment managers with diverse leadership, as well as GS Accelerate, the firms in-house innovation engine. I mentioned at the top, youre the youngest member of the banks management committee. Shes about 10 years younger than the average man already on the committee, after becoming a partner just four years ago. By years end, 40% of its employees were working in those locations, the company said. Goldman named 60 new partners on Thursday. Goldman Sachs (GS-0.84%) CEO David Solomon has promoted Stephanie Cohen to co-head its consumer banking and wealth management division as part of an executive shuffle at the bank.. 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. Become a business insider with the latest news. When Goldmans board gathered on the West Coast in late June, she gave a presentation on that groups work. More than 90% of appraisers are white, and researchers have found that bias leads to lower valuations for homeowners of color. She graduated cum laude from New York University and received an M.B.A. in May from Indiana University. Youve begun offering credit beyond debt consolidation. Yeah, I think that is, as we think about these two self reinforcing strategies that were pursuing consumer, thats one of the I think the really hopefully great ideas we have around it. Talk a little bit about how you do that as a leader. Now I have to turn the conversation a little bit back to you for a minute, because youre a lifer at Goldman Sachs. Goldman Sachs' embattled full-time boss and part-time deejay David Solomon tried to put a positive spin Tuesday on the company's failed foray into consumer banking. 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.
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