As soon as next month, Goldman Sachs will be offering digital wealth management services to individuals who meet account minimums of $5,000, according to a Financial Times’ report. The founder of United Capital, Joe Duran, told the publication that the automated advice platform, or so-called robo advisor, is “on track” for a 2020 launch and that the minimum investment is yet to be finalized.
More details will be revealed at Goldman’s investor day, January 29, but “demand is higher than I expected,” said Duran of clients wanting to utilize the robo advisor. By targeting clients with fewer assets, Goldman hopes to create a pipeline into the financial services provider. But it isn’t the only manner of bringing in new assets. Referrals from Goldman’s private banks are a “much bigger growth area than originally envisioned,” he added, according to the report.
Initially the robo advisor will be available for both United Capital’s clients, as well as to advisors who use United Capital’s FinLife platform. The firm is considering a direct-to-consumer feature, as well, Duran confirmed to WealthManagement.com at the MarketCounsel Summit in Miami.
Marcus could also deploy the robo advisor in the future, according to the report. Nutmeg, a British digital wealth advisor that has received investments from Goldman, will be launching under the Marcus brand in the U.K. next year.
Only six months have passed since Goldman Sachs acquired United Capital in May for $750 million in cash.