- Goldman Sachs may be preparing to launch a robo advisor, which would be the company’s digital entry into the smaller market
Financial giant Goldman Sachs has developed a robo advisor that is ready to be deployed, according to Financial-Planning.com. The automated advisor platform would become Goldman Sachs’ digital entry into the smaller market. These details were revealed by Rachel Schnoll, the Head of FinLife at United Capital Financial Advisers (Goldman Sachs subsidiary) at the Schwab Impact conference.
“This is something that Goldman Sachs has actually built — we just haven’t deployed yet,” said Schnoll via Financial-Planning.com. Schnoll pointed out that advisors tend to struggle with small clients and what to do with them. A robo advisor helps solve that problem.
Goldman Sachs is not the only financial giant to consider a robo advisor. Last month, Vanguard revealed it was also piloting a digital robo advisory service. The Vanguard Digital Advisor is priced at 15 basis points and requires a $3,000 account minimum. It is unknown what the Goldman Sachs robo advisor would cost.
Goldman acquired United Capital for $750 million in cash earlier this year. This acquisition gave Goldman Sachs access to high net worth clients with assets of well over $1 million. At the time of the acquisition, United had assets under management of about $25 billion and $230 million in revenue. And United’s FinLife CX platform and financial planning platform was also included in the acquisition.