Maybe Goldman Sachs leads the way so that Digital Advice reaches the $1.26 trillion projected by 2023.
— Efi Pylarinou (@efipm) July 16, 2019
The large players are moving down-market, slowly and steadily. Goldman Sachs moved Marcus into their asset management division last year and has just announced that they will launch a robo-advisor with a $5k minimum next year. They acquired early on, Honest Dollar for digital retirement savings and Clarity Money, a PFM app. Both are mobile offerings.
Goldman at a high-level glance
The details of their planned robo-offering are not known yet and Goldman`s offering with the masses is a work in progress.
Will Goldman develop a first-class Mobile digital advice app?
Now that would be a great First in the US market. My intuition tells me that Goldman Sachs will integrate its existing partnerships, like the one with Motif, into this offering and use its existing brand name to build a pipeline of new customers. The partnership with Motif (established earlier this year) aims to launch innovative ETF products and indices based on machine learning and artificial intelligence.
- Goldman Sachs Motif Data Driven World ETF (GDAT)
- Goldman Sachs Motif Finance Reimagined ETF (GFIN)
- Goldman Sachs Motif Human Evolution ETF (GDNA)
- Goldman Sachs Motif Manufacturing Revolution ETF (GMAN)
- Goldman Sachs Motif New Age Consumer ETF (GBUY)
Goldman and the newly acquired network of United Capital, are a great launchpad for the upcoming GS down market offering. Imagine it is Christmas next year and your mass affluent dad, aunt, or older friend already banking with GS and or UC, offer you a new investment account at GS which you can be fund with only $5k. Goldman remains a very sticky brand name that is envied by many in the market, and it will become accessible to the masses. The second trick up GS`s sleeve is that their product offering is not only the basic, mass-produced ETFs only but the innovative, in-house branded forward-looking ETFs too.
Smart products via a low-cost offering, by a top brand name provider. And if GS`s offering is mobile-first, then it has a great chance to leapfrog the existing pack.