Goldman Sachs (NYSE:GS) is divesting from the robo-advisory sector, streamlining its operations and redirecting focus towards core competencies.
On Monday, the Wall Street titan announced an agreement to offload its Marcus Invest digital investment accounts to Betterment, a digital investment advisor.
Launched in 2021, Marcus Invest provided algorithm-driven investment advice, targeting the mass affluent market segment. However, CEO David Solomon is spearheading a strategic retreat from various consumer-oriented ventures, concentrating instead on trading, asset management, and investment banking.
Last August, Goldman Sachs revealed plans to sell a personal finance unit serving the mass affluent. Subsequently, in early October, it announced the sale of specialty lender GreenSky to Sixth Street Partners and other investors. The firm is also exploring options to divest its credit card partnership with General Motors (NYSE:GM), while maintaining another partnership with Apple (NASDAQ:AAPL).
Goldman reported a 28% increase in profits in the first quarter, driven by a surge in investment banking revenues, providing momentum for the company in 2024.
Following the announcement, Goldman’s stock rose nearly 3% on Monday, outpacing the broader US banking sector index with a year-to-date increase of over 8%.
The transition of Marcus Invest accounts to Betterment’s platform is anticipated to occur around June 29. However, Goldman emphasized its continued commitment to its Marcus Deposits business, encompassing savings and certificates of deposit accounts.
“As we prioritize the growth of our Marcus Deposits platform, we have decided to transition away from our digital investment advisor offering,” stated Marcos Rosenberg, global head of Goldman Sachs Marcus. “Betterment was the obvious choice for those accounts,” he added.
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