Independent digital investment advisor Betterment has reached an agreement with Goldman Sachs to acquire the digital investment accounts of Marcus Invest.
Subject to customary closing conditions, those accounts will be transferred to Betterment around June 29, the companies said in a Monday (April 22) press release. Customers will have the option to opt out of this transfer.
Those who are transferred will join the more than 850,000 customers served and $45 billion in assets managed by Betterment, according to the release.
“This acquisition further cements our leadership in the digital investing space,” Sarah Levy, CEO of Betterment, said in the release. “We are excited to welcome these customers to Betterment where our scalable technology platform will continue to support them on their investing journeys.”
Betterment is acquiring only the accounts and assets under management of Marcus Invest; this transaction does not include any other accounts, technology, employees or operations, according to the release.
Goldman Sachs will no longer offer investment services via Marcus Invest, which offered digitally customized investment portfolios to consumers, according to the Marcus website.
The company wanted to find a “great home” for the customers of Marcus Invest while the company transitions away from that offering and sharpens its focus on its Marcus Deposits platform, Marcos Rosenberg, global head of Goldman Sachs Marcus, said in the press release.
“Betterment was the obvious choice for those accounts as we share a deep commitment to customer satisfaction,” Rosenberg said. “We look forward to continuing to serve our Marcus Deposits customers with great products and a great experience.”
Goldman Sachs launched Marcus Invest in February 2021 to facilitate automated stock buys and target the retail investor. The company said at the time that Marcus Invest and Marcus Checking offered a digital app-based banking experience designed to give Goldman Sachs the ability to “be someone’s primary banking relationship.”
While Goldman Sachs typically targeted investors with over $10 million in assets at the time of the launch, Marcus Invest had a minimum account balance of $1,000.
The company’s attempt to move downstream did not go as planned, PYMNTS reported in February 2023. At that point, the investment bank was mulling the future of its consumer business.
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