Wow. Stephanie Cohen: 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. She is the daughter . And then on the other side of the people equation is our clients and our customers. 1 Executive Summary Primary drivers Key focus areas INVESTOR DAY 2023 PLATFORM SOLUTIONS . We want to be your primary bank. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Jennifer, it is great to be here. Earlier in her career, Ms. Cohen worked in New York in the M&A department. And the last thing Ill say on it is I love going to visit our offices outside of the US particularly in places like Asia, because theyre in a different place as it relates to the development of financial services. Kristin Broughton Reprint For reprint and licensing requests for this article, click here. Learn more about Marcus by Goldman Sachs and check out additional episodes of EMERGE Everywhere. Cohens elevation to the committee followed just days later strong evidence she has the incoming CEOs confidence. By continuing to use our site you agree to our Terms of Use and Privacy Policy. And I remember these moments of falling really hard and your parents, your coach is like, Oh my. She dug into the bones of the deal and was very compelling.". They are not only of course the right thing to do, but it is the only way to run the business. Goldman's $2.2 billion acquisition of GreenSky allows the bank to beef up its customer base and gives it access to the fintech's network of more than 10,000 merchants. You also have mentioned to me before that when you became the chief strategy officer, the very first book you read was The Unbanking of America. Cohen is a Goldman Sachs lifer who started at the bank as an analyst back in 1999, spending time in New York and San Francisco. And in doing that, we want to fundamentally change the way people experience financial services and in doing that improve their lives. Carter Johnson and Hayley Cuccinello. For example, when I am 60 and look back, what might I need the most? Secondly, culturally. And we think it does help people better manage their finances. Since then, the 41-year-old has charted a rapid rise inside Goldman Sachs, landing a seat last week on its most coveted decision-making body. Its funny because as chief strategy officer, people do this, Do you sit around and just have really big thoughts? No, ideas are really nice, but its about execution. Theres the customer calls, which I love listening to. What it really was, was it was where people went when they had really great ideas and they just wanted to get it done. And so I think its embedded in your question, but I think its a fair question. And you asked me about the focus. Cohen, who oversees 11,000 employees in her division, said that the business is divided along three lines: ultra-high- wealth households; companies and their employees; and consumers. That meant Cohen had to work closely with the then-CEO of the Fiat-Chrysler group, Sergio Marchionne, sometimes camping out for talks in Detroit or paying visits to the U.S. Treasury Department. 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. We do it internally. Thank you for inviting me. And so what are we? Youve got to figure out whats important to you and what you really want to spendmoney on. You are now subscribed to our newsletters. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. She is also a member of the Firmwide Asset Liability Committee and the Global Inclusion and Diversity Committee, serving as a Global Executive sponsor of the Women's Network. Money 20/20 USA 2021 Speaker Oct 24, 2021 The 43-year-old. 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. 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. "They are like-minded brands that are meeting people where they are," Cohen said. Already, Steven Mnuchin has been tapped as Treasury secretary, Stephen K. Bannon was named senior adviser and Gary D. Cohn, Goldman's president, is expected to direct the National Economic Council. Shared by Stephanie Cohen At a critical moment for women's and family health, I am proud to share news of Maven Clinic's Series E, led by General Catalyst. They are Goldman Sachs customers. Wow, this is so devastating. And then weve also done that with Walmart and Amazon in terms of providing credit to their merchants. We have the ability to have access to our clients in Texas but also more broadly across the United States and internationally. Stephanie Cohen is now the management committee's youngest, with the rare label of 'ex officio' member. Yeah. 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. But advertising revenue helps support our journalism. Second, in kind of a funny way, theres not much things that are hard and scary after youve lived with the you alone center of the ice, audience in front of you, judges behind you, couple of minutes to do something that youve practiced for hours upon hours. Collage of David Solomon . And then we did savings. Internet Explorer not supported . Mr . Stephanie Cohen: By doing that, you can actually, authentically be the person you want without assuming that you have to be someone else., Make it easier to make the right decisions. I know many of them, but it says something entirely different to have someone at the operating committee level. Stephanie Cohen: Your session has expired, please login again. Measurement made easy for your organization. Stephanie joined Goldman Sachs as an analyst in 1999, was named managing director in 2008, and became a partner in 2014. Already a member? We get it: you like to have control of your own internet experience. 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. 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 so reading The Unbanking of America was kind of an emotional journey for me, which was that I cant believe I dont know this. Goldman named 60 new partners on Thursday. She joined Goldman Sachs as an Analyst in 1999, was named Managing Director in 2008 and Partner in 2014. Outside of work, Cohen spends time with her husband and young son, who "helps me hone my negotiation skills," she laughs. But she is quick to point out that this is no PR ploy on behalf of the bank: "This is not philanthropy. The banking industry appears to be stuck when it comes to diversifying the leadership ranks. But she really got it. And then because while we can access millions of customers, the way that we can really have impact is by taking those capabilities and embedding it into the ecosystems of our partners. 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. Stephanie Cohen, a 41-year-old grad of the University of Illinois at Urbana-Champaign, has charted a rapid rise inside Goldman Sachs, landing a seat on its most-coveted decision-making. Where does the bank and the Fed go from here? And so 85% of all venture capital dollars goes to all male founded teams. Stephanie Cohen, a merger banker who has spent the past few years doing deals for private-equity firms and other big investors, will replace Stephen Scherr, who has held the role since 2014,. I really felt like I hadnt learned it. You can learn more about how we use cookies by reviewing our Privacy Policy.Dismiss, Global Co-Head of Consumer and Wealth Management. You, it turns out I learned, were once a competitive figure skater growing up. Close. [1] [2] Prior to March 2008, she was the firm's Chief Investment Strategist. And were going to be better if we do that. The best way to do this is to have a long-term view. We want to be the bank on your phone, she says. 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. Its pretty amazing feat that youve managed to essentially build a homegrown digital business from inside this storied institution. And this kind of idea of people wanting to experience financial services deeply embedded into ecosystems rather than being this separate action. As of February 2017, she continues to serve as an advisory director at Goldman Sachs, after retiring from leadership of its Global Markets Institute. The consumer and wealth management team in Dallas is close to 1,200 now, which is about how many are on the same team in New York, said Cohen, who also noted that employees are back in the office in the U.S. Cohens division, consumer and wealth management, includes the consumer banking platform Marcus, which launched in 2016 followed by an app in January 2020 that allows consumers to do everyday banking. And so were having a great time, really engaging with our team. Feb 2, 2021, 8:42 AM. 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).. These stories and more in banking news this week. . 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. You started out with a very simple proposition, which was, lets help you refinance the credit card debt you have and really make sure that were doing that in a high quality way that really puts the customer at the center. And so thats really what were trying to do with what were doing in consumer and in Marcus. Goldman Sachs has created a new consumer and wealth management division co-led by Stephanie Cohen. And weve turned that into a lot of different financial products, but the reality is were just trying to solve those problems for consumers. Below are steps you can take in order to whitelist Observer.com on your browser: Click the AdBlock button on your browser and select Don't run on pages on this domain. In this article that I had written, I talked about how originally, the mob was after Wall Street, if you will. And that means that we need to go from being about a product, to really having solutions and building holistic relationships with our customers and by building that entire product suite and making it something thats simple and transparent, easy for millions of people to access, we think were going to do that. 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. Change is underway in the financial services industry and it's disrupt or be disrupted. This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp. We'll send you a myFT Daily Digest email rounding up the latest Goldman Sachs Group news every morning. Goldman Sachs Group Inc's Chief Executive David Solomon and top executives will give investors an update on their strategy on Tuesday. Are you okay? And being really happy because you could tell that you were almost there. Whether thats direct disbursements in our loans, meaning when you sign up for a Marcus loan, we can directly pay off your other debts. In the latest in a rapid career of promotions, Cohen, 43, took over as co-head of consumer and wealth management in January, overseeing consumer bank Marcus, which has racked up $97 billion in deposits. Jennifer Tescher: 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. Our goal in our vision, in our people, is to empower our clients and customers to achieve their financial goals and we think help them live better lives. As the banks chief strategy officer, she brought clarity and focus, including a new commitment to diversity and inclusion. We've detected you are on Internet Explorer. Actually, I got on a plane a lot. Goldman Sachs is exploring "strategic alternatives" for its nascent consumer banking business. 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. Im actually a former journalist. In 2021, Goldman Sachs announced the One Million Black Women initiative, a $10-billion investment initiative focused on investing in Black women to, ``drive investment in housing, health care, access to capital, education, job creation and workforce advancement, digital connectivity, and financial health.'' In 2020, JPMorgan Chase . And the idea really brings together the reason by the way, why we have our consumer and wealth management businesses all together. A Flagstar executive said the mortgage-focused bank is "not just going to sit on the sidelines and watch this happen.". Yeah. Jennifer Tescher: Stephanie Cohen: And its been so fascinating to watch the frankly, explosive growth of the business. Two former Goldman Sachs executives have been indicted for conspiring in a multibillion-dollar theft from the Malaysian investment fund known as 1MDB, a scandal that could cost Goldman as. Explore how to make financial services a force for good. 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 . She was previously based in New York where she reported for The Motley Fool, TheStreet and Business Insider. 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. She graduated cum laude from New York University and received an M.B.A. in May from Indiana University. And so you didnt get into this chief strategy officer role with a real clear job description. Meaning I end a lot of conversations with, How can I be most helpful to you? And I do try to give people really direct feedback because I think its the way to make them better in their own careers. I often say that feedback is a gift and I had a lot of people who gave me a lot of feedback along the way. 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. Youre just one more inch and I would have landed that jump. And one of the things that we kind of put out there in the wild was this idea of being able to pay your credit card bill multiple times a month in the Apple cart. I love that you had that visceral experience from the book and particularly given the role youre in now. And its interesting though, because when we think about it and we talk about it and what we focus on every day, the mission is still the same. Its important, but the world is changing so fast that just being someone who analyzes whats happened historically and trying to put that on the future, I think doesnt really work. Log in to our website to save your bookmarks. 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. wants to be your digital banker, and it has assigned the job to Stephanie Cohen, marking her second year on the Barrons list. We call those businesses, private wealth management and personal financial management. Because maybe the content, or for example, we have something called Marcus Insights, which helps people aggregate their accounts and really provide insights into how theyre spending their money and better budget. And then we did the Apple card. Cohen, 41, joined Goldman Sachs in. Talk a little bit about how Marcus has evolved and where you see that business heading now that youve reached, say adolescence. She is now even given the place at the top of the bank. 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. Stephanie Cohen: Now I have to turn the conversation a little bit back to you for a minute, because youre a lifer at Goldman Sachs. One, it affects how you manage your own people. Stephanie Hui, Head of the Merchant Banking Division in Asia Pacific Ex-Japan, Goldman Sachs Voices of Experience "Earlier in my career, I was more reserved about expressing my views," said Stephanie Hui, head of the Merchant Banking Division in Asia Pacific Ex-Japan at Goldman Sachs. Stephanie is head of Private Equity in Asia and global co-head of Growth Equity within Goldman Sachs Asset Management. Stephanie Cohen quickly rose through the ranks at Goldman Sachs to become one of the youngest members of the banks senior leadership, joining just a small handful of women at that level. 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? Goldman now has credit-card deals with And so I did that and I mirrored that with my people. Yeah. You should spendmoney on things that truly make you happy. . It could be meal delivery services, paying for working out, or makeup and clothes. 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 We're getting to the moment where we can help someone holistically manage their financial lives," Stephanie Cohen,. Senior Editor, Women's Programs, American Banker. You can connect with me on Twitter @JenTescher. 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. And by the way, if you take all of that and everything else were doing, weve now found that two out of three of our Marcus loans customers, after they take out a Marcus loan, their overall debt does decline. The second thing is this kind of get stuff done attitude. . Hier kommt Frau Goldman Sachs. 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.' The bank says the candidates failed to make full disclosures. The Wall Street heavyweight, which had about 44,000 global employees at the end of 2021, is particularly focused on engineering talent in Dallas-Fort Worth, said Stephanie Cohen, who co-leads the consumer and wealth management division at Goldman. 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. 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. to talk about career, money and life. If you liked this episode, please review the show and subscribe wherever you get your podcasts. She also serves as trustee for the Board of The Economic Club of New York. Ms. Cohen serves on the National Board of Directors of College Spring and as a member of the Board of Quill.org. 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. Abby Joseph Cohen (born February 29, 1952) is an American economist and financial analyst on Wall Street. We could have a whole conversation you and me, just on this topic so lets do that another time. A great question. Im glad youre drilling in on it. 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. Marcus is Goldman's digital-first consumer bank, offers customers saving accounts, personal loans and investment advisory services. 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. In 2008, she managed Conflicts and Business Selection for IBD in the Americas. Its not a one size fits all product and solution. When I walked into a board room, theyd expect a very tall man, but instead theyd get a relatively shortwoman. 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. And so I did that. One, we want to be the bank on your phone. 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. Natalie is an award-winning reporter who covers banks, crypto, fraud, deals and other money topics for The Dallas Morning News. I did that internally and I also did it externally. Stephanie Cohen is Goldman Sachs' Chief Strategy Officer and an Ex Officio member of the Management Committee. Prior to assuming her current role, Ms. Cohen was Co-Head of the Consumer and Wealth Management Division. Im going to start by saying that Ive gotten to where I am today because there are amazing people inside of Goldman Sachs and outside of Goldman Sachs who have been tremendously helpful to me. It doesnt have to be one thing or the other; its about making spending decisions consciously rather than scrolling on your phone and thinking about what youshould spend on., What Ive noticed at Goldman Sachs isthat men tend to talk about investment opportunities amongst each other. Stephanie Cohen is one the bank's highest-ranking female . General Motors We have more than 7,500 people in our division globally. Prior to her current role, Stephanie drove strategy, M&A, strategic investing, and partnerships as the firm's chief strategy officer. And this year were going to launch Marcus Invest and checking and a credit card partnership with General Motors. Dallas is quite central, Cohen said. And I thought a lot about this because as you change into a new role, you have to think about what are the things that have helped you to be successful? Ultimately, I think thats, to your point on this moment in time, I think were in a place where the world is changing so fast that knowing every single about history is important.