Goldman Sachs (NYSE:GS) has for decades set its sights on the global elite when it comes to wealth management. Now, it’s opening up to everyone else.
The bank has begun internal testing of a new automated investment service ahead of a broader rollout early next year. Employees who sign on to the digital service, called Marcus Invest, will pay an annual management fee of 0.15%, according to the company memo.
"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," said an email announcing the service. The memo was signed by Tucker York and Stephanie Cohen, co-heads of the consumer and wealth management division.
Goldman’s move is the latest example of a shift toward Main Street that begun in 2016 with its Marcus brand of personal loans and savings accounts. The bank, which has long catered to the ultra-wealthy, corporate officers and institutional investors, is seeking new sources of revenue away from trading and investment banking.
To that end, the firm hopes to broaden its reach in wealth management to the so-called mass affluent. For years, the bank has mostly targeted clients with at least $25 million to invest for white-glove service from its private wealth management group. Then last year, Goldman acquired boutique wealth management firm United Capital to help it serve single-digit millionaires.
The Marcus Invest account, however, can be started with as little as $1,000, according to the memo.
GS shares trailed Monday’s close by $2.31 to $254.68.
