- Goldman Sachs is preparing to launch a robo-advisor next year and the account minimum for the service might be as low as $5,000
Goldman Sachs is planning to launch a robo-advisor next year and the account minimum for the service might be as low as $5,000, according to United Capital Financial Partners founder and CEO Joe Duran in an interview with the Financial Times. Goldman Sachs acquired United Capital for $750 million in May in order to offer more products for its high net worth clients.
Duran and his team is building the digital wealth management service and it could serve clients for as little as $5,000, $10,000, or $15,000 for investing.
“It’s a pipeline for future clients,” said Duran via The Financial Times. Initially, the service would be available for clients with low complexity and not much in assets.
While Goldman Sachs used to be accessible to just high net worth investors, the company has been launching products to gain access to investors who have less assets. For example, the company launched a high-interest digital bank called Marcus. And Goldman Sachs also partnered with Apple to launch a credit card.
Duran acknowledged that his company’s integration with Goldman Sachs is happening quicker than expected. And now there is an opportunity to surpass the original goal of doubling its $25 billion of assets under management within 3 years. United Capital has started out trials with clients found through Goldman’s employee financial counseling service called Ayco.
“We’ve already picked up millions of dollars of new clients from those relationships,” Duran added. “The demand is higher than I expected — corporate entities love having a local adviser who can meet with them face to face.” He added that referrals from Goldman’s private bank were a “much bigger growth area than originally envisioned.”