Goldman Sachs Testing Wealth Management App For The Masses

Goldman Sachs is testing a wealth management app for the masses.

The bank has reportedly begun internal testing of the digital service, called Marcus Invest, with a larger rollout planned for early 2021, according to CNBC.

CNBC said the service will utilize some of the intellectual prowess that has been historically tapped by Goldman’s high-end clients, including Goldman’s smart-beat ETFs and asset allocation models.

“As we prepare for the public launch in Q1 2021, we are pleased to invite consumer and wealth management colleagues to provide early feedback on Marcus Invest through our beta program,” Goldman said in an internal memo, according to CNBC. The memo was signed by Tucker York and Stephanie Cohen, co-heads of the consumer and wealth management division.

The digital service is the elite bank’s latest push into the broader consumer market. In 2016, Goldman unveiled a line of personal loans and savings accounts under the Marcus brand name aimed at less affluent customers. Traditionally, investors needed at least $25 million to invest with its private wealth management group.

In comparison, the Marcus Invest account can be opened with just $1,000. The account will be integrated with digital features such as a personal finance tool called Marcus Insights, according to CNBC.

Goldman launched Marcus Insights in September. The 150-year-old Wall Street powerhouse developed Marcus Insights by leveraging some of the knowledge gained from its $100 million purchase of a personal finance tool called Clarity Money from Adam Dell, the brother of PC-making billionaire Michael Dell. The platform is designed to give customers a high-level view of their accounts at multiple institutions.

Last December, PYMNTS reported that Goldman Sachs was planning to launch digital wealth management services to customers with as little as $5,000 in 2020.

The company was also planning to launch a robo adviser, offering a solution for clients with as little as “$5,000, $10,000 or $15,000” to invest, Joe Duran, founder of the United Capital wealth management firm that Goldman acquired earlier this year, told the Financial Times. While the minimum investment hasn’t been finalized yet, it will be “significantly lower” than Goldman’s traditional accounts.

“It’s a pipeline for future clients,” Duran said, adding that the robo adviser would start out with clients “with low complexity, not that much in assets.”

The robo adviser will be offered both to United Capital’s direct clients, as well as outside advisers who use United Capital’s FinLife wealth management platform.

“We have a lot of clients who have kids and are in relationships with people who don’t have their [level of] assets,” said Duran. He said the typical account size is expected to be higher than other robo advisers such as Betterment, which has no minimum investment amount, “because of the kind of people the [Goldman] brand attracts.”