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Of all the changes in the banking industry over the last eight years, this one is perhaps most surprising: the bank that was once synonymous with high finance now takes deposits as small as $1. Here is a look at key steps in Goldman Sachs' decision to look beyond its roots in investment banking and develop a retail business.
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The End of the Big Investment Bank

At the height of the financial crisis in September 2008, Goldman and Morgan Stanley unexpectedly became bank holding companies. "We believe that Goldman Sachs, under Federal Reserve supervision, will be regarded as an even more secure institution with an exceptionally clean balance sheet and a greater diversity of funding sources," CEO Lloyd Blankfein said at the time. The new status brought closer regulatory scrutiny but also certain advantages, including the opportunity to enter new businesses that were previously off limits.
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Regulations Crimp Profits

The Dodd-Frank Act of 2010 and subsequent post-crisis rules put new limits on Goldman's ability to make money from its traditional investment banking businesses. The Volcker Rule hampered the firm's trading businesses, while tougher capital and liquidity rules and stress-testing requirements also forced Goldman to temper its risk-taking. Last year, Goldman reported net income of $6.1 billion, its lowest earnings total since 2011.
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Retail Ambitions Take Shape

In May 2015, Goldman announced the hiring of Harit Talwar, a longtime credit-card industry executive, to develop an online lending platform. "The firm has identified digitally led banking services to consumers and small businesses as an area of opportunity," Blankfein and Chief Operating Officer Gary Cohn said in a memo. The lending platform, which has been dubbed Mosaic, is expected to launch later this year.
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A New Source of Deposits

Goldman agreed last August to buy $16 billion in online deposits from General Electric's financial arm. The Federal Reserve Board approved the sale in March.  The acquisition gives Goldman the opportunity to fund more of its lending businesses with low-cost deposits. It also gives Goldman, for the first time, the ability to accept online deposits. Goldman has described that new capability as a strategic priority.
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Building Out Wealth Management

Last fall, Goldman Sachs Asset Management started offering its clients the opportunity to invest in low-cost exchange-traded funds. A Goldman executive said that the firm is taking quantitative strategies that it developed for institutional investors and making them available to individuals.
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Next Prong in Digital Strategy: Retirement Plans

In March, Goldman bought Honest Dollar, a startup that specializes in retirement plans. Honest Dollar's web- and mobile-based platform is designed to make it easier for small companies to offer retirement benefits to their employees. In a press release announcing the acquisition, Goldman noted that approximately 45 million Americans do not have access to employer-sponsored plans.
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Digital Banking for the Masses

Goldman has been taking online deposits since late April, using a digital banking arm was built on top of the platform the firm acquired from GE. GS Bank offers online savings accounts and certificates of deposit. As of Tuesday, the bank was paying a 1.05% annual percentage yield on its savings accounts, which was among the highest rates available through Bankrate.com.
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