Goldman Sachs sells Marcus Invest accounts to Betterment

Goldman Sachs has announced a significant pivot in its consumer banking strategy by offloading its Marcus Invest digital investing accounts to Betterment. This move marks a clear step back from the consumer market for the Wall Street titan, which had previously sought to expand its reach through Marcus, its online retail banking service.

Betterment, already a heavyweight in the digital investment advisory space, will absorb Marcus Invest customers who do not opt out by late June. The terms of the deal, including the number of accounts transferred, remain undisclosed.

Goldman Sachs had launched Marcus Invest within its Marcus platform in 2021, offering automated investment advice tailored to customer risk profiles. Despite this innovation, Goldman is now narrowing its focus, divesting from Marcus Invest and previously from its credit card partnership with Apple and the BNPL firm Greensky.

Goldman Sachs reaffirms its commitment to the Marcus brand, particularly its Marcus Deposits platform. Marcos Rosenberg, the global head of Goldman Sachs Marcus, emphasized the company’s intent to concentrate on this growing sector, which boasts over three million customers and more than $100 billion in consumer deposits. This strategic realignment suggests a more targeted approach to consumer banking, prioritising stability and scale over the breadth of services.

“As we increase our focus on our growing Marcus Deposits platform, we made the decision to transition away from our digital investment advisor offering and wanted to find a great home for those customers,” said Rosenberg.

Betterment stands to gain significantly from this acquisition, bolstering its position as the largest independent digital investment advisor in the US. With over 850,000 customers and managing more than $45 billion in assets, Betterment’s CEO, Sarah Levy, expressed enthusiasm for welcoming Marcus Invest clients into their fold, promising a seamless continuation of their investment journeys on Betterment’s scalable platform.

Betterment will offer transitioned account holders access to automated investing, tax, and planning tools alongside a range of different account types with a variety of portfolio diversification opportunities.

• Read more under:
• BankingTech
• WealthTech