REUTERS: Goldman Sachs Group Inc is launching a digital wealth-management platform that allocates and rebalances customers' wealth across portfolios of stocks and bonds.
The low-cost platform, Marcus Invest, will allocate wealth based on models developed by the bank's investment-strategy group.
The latest digital banking push is in line with Chief Executive David Solomon's plan to reduce Goldman's reliance on volatile trading and investment banking revenue, while shifting focus towards Marcus, its consumer banking unit.
The bank launched Marcus in 2016 to diversify its revenue and funding sources by offering savings accounts and personal loans to retail customers. Goldman also has an existing Marcus consumer-banking app.
Solomon was one of the people who beta-tested the new investment app, according to a Wall Street Journal report on Tuesday. https://on.wsj.com/2N4gf1M
Marcus Invest offers both individual and joint investment accounts, as well as three types of individual retirement accounts, the bank said.
Customers can open an account with a minimum of US$1,000 and Marcus Invest charges an annual advisory fees of 0.35per cent.
(Reporting by Noor Zainab Hussain in Bengaluru, Editing by Sherry Jacob-Phillips)