As we predicted just yesterday, Goldman Sachs will move into the wealth management space, according to a note by CNBC. The additional service was alluded to in the most recent Goldman earnings call which took place last week.
The new financial advisor service will most likely take the form of a Robo-advisor application leveraging the profound amount of data Goldman correlates today. The service is expected to show up as part of the fast-growing Marcus digital bank brand and target the digital masses.
The report quoted an unnamed Goldman executive:
“We plan to launch a broader wealth management offering, combining Marcus’ digital capabilities with the more established sales channels and products currently housed within the investment management division.”
In recognition of the importance of their Fintech ambitions, Goldman is re-organizing a bit as the division in charge will be renamed Consumer and Investment Management. Harit Talwar, the executive who lead the online lending project at Goldman, will run the digital finance business globally.
While Goldman may have been slow to embrace the Fintech revolution at first the global investment bank now appears to be firing on all cylinders. Marcus UK has been experiencing “explosive growth” from consumer accounts. The UK is one of the most dynamic digital banking markets in the world. Unlike the go slow environment in the US, a regulatory ecosystem that can be described as byzantine at best, the UK has embraced Fintech innovation and new challenger banks. The fact that Marcus by Goldman Sachs, jumped from zero accounts in the UK to more than 75,000 in just few weeks is indicative of consumer demand for something better than a traditional brick and mortar high street bank.