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The Wall Street Journal: Goldman Sachs buys personal-finance app Clarity Money

Goldman Sachs Group Inc. purchased personal-finance app Clarity Money, obtaining a cell storefront for its growing shopper financial institution.

The deal closed on Friday for Clarity Money, whose backers come with Soros Capital and Citigroup Inc.’s C, -1.55%   venture-capital arm. Adam Dell — brother of Michael Dell, the personal-computer pioneer — based Clarity Money and will join Goldman GS, -1.41%   as a spouse, a title hardly ever given to outsiders.

The Wall Street company has been intensifying its push into retail banking, a decade after its conversion from a broker-dealer right into a financial institution that can take shopper deposits. Under the emblem name Marcus, Goldman began making personal loans online in 2016 and has originated greater than $2.five billion thus far. It additionally offers high-interest financial savings accounts and has about 350,000 shoppers throughout both products.

As previously reported, Goldman is paying a excessive eight-figure sum for Clarity Money — a wealthy valuation for a two-year-old startup that has but to turn a profit.  But Clarity Money’s roughly a million users will quadruple Goldman’s customer base. In addition to Dell, about two dozen other Clarity Money staff will join the financial institution.

An expanded version of this document appears on WSJ.com.

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