FinTech: Goldman Launches The Marcus Invest Robo-Adviser For Retail Investors
Marcus Invest is an automated wealth management platform.
Goldman Sachs (NYSE: GS) is making a further push into digital and consumer-facing banking through its Marcus unit. On Tuesday the Wall Street giant unveiled Marcus Invest, a robo-adviser that will need a customer to deposit a minimum of $1,000 and pay an annual fee of 0.35%. (Mint)
The platform will invest these customer funds in ETFs for stocks and bonds. The robo-adviser will automatically allocate and rebalance these managed portfolios using strategies developed by Goldman’s investment group.
That group traditionally catered to the high-net-worth and institutional clientele that could afford account minimums of as much as $10 million.
But clearly, priorities have shifted after Chief Executive David Solomon decided to lower the bank’s reliance on revenues from trading and investment banking.
The Marcus brand is also targeting younger customers that are more inclined to take control of their finances.
Marcus, which launched in 2016, already offers savings accounts and personals loans to retail customers.
Last month it announced a tie-up with card issuing company Marqeta intending to offer digital checking accounts to Marcus customers later this year.
Goldman also announced a collaboration with Mastercard (NYSE: MA) to issue GM-branded credit cards.
No individual stocks
Since the platform only offers exposure to ETFs, investors cannot expect to invest in stocks.
“You’ll have exposure to a range of industries and economies so you have multiple growth opportunities and won’t be tied to the fate of a single stock,” Marcus Invest says on its website.
Speaking to the Wall Street Journal, Stephanie Cohen, global co-head of Goldman’s consumer and wealth-management division, said “we get to the point where we can be someone’s primary banking relationship, meaning we can be the digital bank on your phone.”
Image Credit: Flickr
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