[ad_1]
Goldman Sachs, a brand very associated with the very wealthy, enters the middle class by mixing strategies online and offline.
Goldman is restructuring its online retail banking division, Marcus, created two years ago, into an investment management division, according to an internal Goldman memo obtained by Financial planning. The platform already offers personal loans and deposit accounts. The extension of digital wealth management would allow for greater cross-selling of investment products.
"We launched the digital finance sector because it was clear that technology and data fundamentally changed the way people use financial services products," the memo says. "By aligning the potential of Marcus Given the long-standing strengths of our investment management business, we see an important opportunity to serve a broader range of consumers and investors. "
Since its launch, Marcus has issued more than $ 4 billion in consumer loans and has grown well beyond its original plan to help customers refinance their credit card debt. The division claims more than two million customers and more than $ 30 billion in deposits.
Bloomberg News
Goldman has not commented on exactly what Marcus could offer his clients in the future, but he's aiming to develop credit cards and retirement planning products.
Even for a brand as powerful as Goldman, it may not be a slam dunk.
"We know that it is a trivialized, competitive and complex activity, and we need to differentiate ourselves and achieve it," said Marty Chavez, chief financial officer of Goldman, during the year. a conference call with analysts. "This is what we do."
An expert agreed that competition would be tough.
While a new digital offering has the potential to steal market share, the robot industry may already be saturating, says Scott Smith, director of Cerulli Associates.
"I do not see the pent-up demand for another Robo advisor yet," says Smith. This is a chance to start a business, but there will be no avalanche of short term people. "
"Everyone wants to be a unique platform where everyone strives to achieve their financial goals," he adds. "The easy part is to understand the strategy. The hard part is the run. "
Indeed, Goldman is not the only bank to tap into its portfolio of retail banking customers.
Robo's advice fueled an explosion of new discretionary accounts that surpassed $ 27 million in 2017, up from just $ 15 million in 2013, according to an Aite Group study. Assets on digital platforms are expected to exceed $ 1.5 trillion by 2021.
HSBC, meanwhile, launched this month a robotics advisor available to retail banking customers with at least $ 5,000 in an individual retirement account and $ 10,000 in discretionary accounts for annual fee of 50 basis points. Other holdings include Fifth Third Bancorp, which partnered with Fidelity to offer automated advice in June. BankMobile, a division of Customers Bancorp, and MemoryBank, a unit of Republic Bank & Trust, have also launched their own mobile units.
According to Smith, the main potential pitfall for a large bank seeking to transfer assets from its clients could come from within.
"People do not want to see money coming into the wealth management platform from other segments," he says. "It's very territorial."
Source link
