Goldman Sachs has for decades set its sights on the global elite when it comes to wealth management. Now, it’s opening up to everyone else.
The bank has begun internal testing of a new automated investment service ahead of a broader rollout early next year… Employees who sign on to the digital service, called Marcus Invest, will pay an annual management fee of 0.15%…
Goldman’s move is the latest example of a shift toward Main Street that begun in 2016 with its Marcus brand of personal loans and savings accounts. The bank, which has long catered to the ultra-wealthy, corporate officers and institutional investors, is seeking new sources of revenue away from trading and investment banking.
As part of that push, the firm hopes to broaden its reach in wealth management to the so-called mass affluent. For years, the bank has mostly targeted clients with at least $25 million to invest for white-glove service from its private wealth management group. Then last year, Goldman acquired boutique wealth management firm United Capital to help it serve single-digit millionaires.
The Marcus Invest account, however, can be started with as little as $1,000… Users can choose among three model portfolios composed of ETFs from Goldman and outside providers. It will be integrated with other offerings, including a personal finance tool called Marcus Insights, on the Marcus app and online portal…
Goldman’s product for the masses comes years after versions from competitors including Morgan Stanley and Bank of America and the start-ups that pioneered the technology. What differentiates Goldman’s is that some of the intellectual firepower once reserved for the firm’s richest clients will be funneled into the digital service.
… “Portfolios are pre-approved by firmwide Compliance and do not require trading pre-clearance,” Goldman said. “After your account is set up, your account will be monitored daily and rebalanced periodically to help you meet your goals.”